Bengaluru’s The House of Rare, which runs Rare Rabbit, more than doubled its net profit in the financial year ending March 31, 2024, thanks to rising sales. Its parent company, Radhamani Textiles, earned a profit of INR 74.5 Cr in FY24, up 131% from INR 32.2 Cr the previous year.
Rare rabbit total revenue raises to INR 641.8 Cr
Established in 2015 by Manish Poddar and Akshika Poddar, The House of Rare runs three brands: Rare Rabbit, Rareism for women, and everyday wear brand Articale. They make money by selling clothes, shoes, and more through both online and offline stores.
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Meanwhile, the House of Rare’s operating revenue jumped 69% to INR 637 Cr in the review year, up from INR 376 Cr in FY23. With other income included, total revenue rose 1.5 times to INR 641.8 Cr in FY24, compared to INR 381 Cr the previous year.
Rare Rabbit expenditure surges by 60%
As the business grew, so did its expenses, but revenue rose even more. The House of Rare’s total expenditure increased by 60% to INR 542 Cr, up from INR 339 Cr last fiscal year.
Their biggest cost, due to being an omnichannel clothing brand, was materials, spending INR 208.4 Cr in FY24, a 53% increase from INR 136 Cr the previous year. Advertising expenses rose by 46% to INR 93 Cr from INR 64 Cr in FY23. Employee costs almost doubled to INR 78 Cr from INR 40 Cr the previous fiscal year.
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Previously in 2024, the startup secured INR 150 Cr in its first funding round from A91 Partners, Nikhil Kamath’s investment firm Gruhas, and Ravi Modi’s family trust (the promoter of Manyavar). This was likely part of a larger ongoing funding round of INR 500 Cr.
Furthermore, the startup raised funds at a pre-money valuation of INR 2,200 Cr (around $264 Mn). The House of Rare competes with brands like DaMenchs, The Souled Store, and XYXX.
