New-age fashion brand Rare Rabbit has successfully raised Rs 150 crore (approximately $18 million) in primary capital, led by A91 Partners. This marks the maiden institutional investment for the Bengaluru-based company since its inception in 2015.
According to regulatory filings accessed from the Registrar of Companies, the board at Rare Rabbit has approved a special resolution to issue 69,230 compulsory convertible preference shares at an issue price of Rs 21,670 each to raise Rs 150 crore.
A91 Partners spearheaded the round with an investment of Rs 102 crore, while Zerodha’s founders, through NKSquared, contributed Rs 29 crore. Additionally, Gruhas Proptech, Ravi Modi Family Trust, and Vendant Modi collectively invested Rs 18.92 crore.
Post-investment, the A91 emerging fund will hold a 9.65% stake in Rare Rabbit, with NKSquared and Ravi Modi Family Trust acquiring 4.15% and 2.13% stakes, respectively.
This funding is part of a larger round, as Rare Rabbit was reportedly in discussions to raise Rs 500 crore, led by A91 Partners, according to Inc42.
Rare Rabbit, a high-end fashion brand specializing in designer clothing for men and women, operates more than 100 stores across India and also offers collections through its online store. The brand has demonstrated rapid growth, with its revenue scaling 72.3% to Rs 381 crore in FY23 and a positive bottom line of Rs 32 crore. The company reportedly clocked a revenue of Rs 600 crore in FY24.
Rare Rabbit competes with brands like Souled Store, which raised around $29 million and achieved a revenue of Rs 235 crore in FY23. Other competitors include Snitch and WROGN, which raised $13 million and $15 million in December 2023 and June, respectively.
In recent months, several fashion and apparel brands have secured their maiden institutional rounds. In May, A91 Partners led a $21 million round in TechnoSport, while Libas raised $18 million led by ICICI Venture’s fund.
