Nikhil Kamath Joins Rs 500 Crore Investment Round for Rare Rabbit: Report
New-age men’s apparel and fashion brand Rare Rabbit is set to close its first-ever institutional funding round, valued at Rs 500 crore. According to a report by The Economic Times, this substantial investment round is led by A91 Partners, with notable contributions from key figures including Ravi Modi, the mastermind behind Vedant Fashions’ Manyavar, and Nikhil Kamath, the co-founder of Zerodha.
Sources familiar with the funding details revealed that Modi’s family office and Kamath are expected to collectively invest approximately Rs 150 crore into Rare Rabbit, while A91 Partners will contribute the remaining Rs 350 crore. The transaction includes about Rs 250 crore as primary capital inflow into the company, with the balance being a secondary share sale by Akshika and Manish Poddar, the founders of Rare Rabbit.
Rare Rabbit, currently valued at an estimated Rs 2,200 crore, has been a self-funded venture until this point. The brand has quickly gained recognition in the direct-to-consumer (D2C) fashion sector. The company reported an impressive revenue of over Rs 600 crore for fiscal year 2024, with an operating profit surpassing Rs 100 crore. This marks a significant growth trajectory, with revenue surging over 60% year-on-year compared to FY23’s operating revenue of Rs 376 crore.
Industry insiders attribute this growth to a surge in premiumisation within the men’s fashion sector over the past few years. Premium brands have experienced substantial revenue increases, particularly in segments such as formal wear, casual shirts, denims, and trousers.
Rare Rabbit was established in 2015 as part of Radhamani Textiles, based in Bengaluru. Initially, the company focused on apparel manufacturing for global brands like Zara before launching its own brand. Alongside Rare Rabbit, the House of Rare includes the premium women’s fashion brand Rareism and the everyday wear brand Articale.
Manish Poddar serves as the creative director for Rare Rabbit, while Akshika Poddar oversees Rareism. The brand has flourished under their leadership, currently operating approximately 135 physical stores. With the new funding, Rare Rabbit plans aggressive expansion, particularly targeting Tier-II and Tier-III cities, in addition to metro areas.
In terms of competition, Rare Rabbit stands alongside established players such as Louis Phillippe, Tommy Hilfiger, and Marks and Spencer, all of which have shown strong revenue figures.
The fashion brand had previously been in discussions with Tata Capital for funding last year, but those negotiations fell through. This new investment round marks a significant milestone for Rare Rabbit, positioning it for continued growth and expansion in the highly competitive fashion industry.