Rare Rabbit, a high-end men’s fashion label, is set to secure around $50 million in funding from venture capital firm A91 Partners, valuing the nine-year-old brand at around $330 million, as reported by The Hindu Businessline.
The discussions, currently in advanced stages, involve the venture firm acquiring a 15% stake in the start-up.
Sources indicated that discussions have been ongoing since the start of the year. Around that time, the clothing brand was also in negotiations with Tata Capital for funding of a similar amount at a valuation of $300 million. However, the deal, which was in the due diligence stage, fell through. Additionally, sources mentioned that Reliance Retail showed interest in acquiring a significant stake in the brand but found the valuations to be too high.
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Tata Capital did not respond to an email seeking clarification. A spokesperson for Reliance Retail stated, “As per our policy, we refrain from commenting on media speculation and rumors.”
Manish Poddar and Akshika Poddar, the founders of Rare Rabbit, were unavailable for comments. Similarly, senior executives at A91 Partners did not respond to messages.
In 2015, Rare Rabbit was founded by the Poddars under the House of Rare umbrella, aiming to revolutionize formal wear for men. Departing from the conventional whites and greys of office attire, the brand encouraged men to embrace colors and styles. As stated on its website, Rare Rabbit celebrates the aspect of men who defy societal expectations. Over the years, the brand has expanded its offerings, ranging from shirts, t-shirts, suits, and blazers to jackets, trousers, and jeans.
Rare Rabbit initiated its retail journey with its first store in Bengaluru and now boasts over 100 outlets across India. Alongside, its women’s brand counterpart, ‘Rareism,’ operates under Radhamani Textiles. According to data from Tracxn, in the fiscal year 2022-23, the company reported a net profit of INR 32.2 crore, a notable increase of over 70% compared to the previous year. Additionally, revenue surged by 74% to reach INR 381 crore.
A91 Partners, typically stepping in during the scale-up phase, has recently provided funding for companies like Akshayakalpa, Blue Tokai, Kaar, Healthkart, and several others.
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