A91 Partners is the primary capital raiser for the new-age fashion brand Rare Rabbit, which has raised Rs 150 crore, or roughly $18 million. Since the company’s founding in 2015, this is the first institutional investment that Bengaluru-based company has received.
In order to raise Rs 150 crore, the board of Rare Rabbit decided to issue 69,230 compulsory convertible preference shares at an issue price of Rs 21,670 apiece, according to the company’s regulatory filings, which can be viewed through the Registrar of Companies.
The round was led by A91 Partners with Rs 102 crore, and NKSquared, the founders of Zerodha, contributed Rs 29 crore. Vendant Modi, Ravi Modi Family Trust, and Gruhas Proptech invested a total of Rs 18.92 crore in the venture.
According to media estimates, the post-allotment valuation of the company is approximately Rs 2,350 crore, or $283 million.
According to the filing, NKSquared and the Ravi Modi Family Trust will receive 4.15% and 2.13% of the company’s equity after the new funds are received, with the A91 emerging fund holding 9.65% of the capital.
This seems to be a part of a bigger round, as Rare Rabbit was in discussions with A91 partners to raise Rs 500 crore. The development was first reported by Inc42.
Designer apparel for both men and women is the focus of the upscale fashion brand Rare Rabbit. The brand sells collections online and through more than 100 of its physical locations in India.
The revenue of Rare Rabbit increased by 72.3% to Rs 381 crore in FY23, with a positive profit margin of Rs 32 crore, demonstrating the company’s rapid growth. According to reports, the business brought in Rs 600 crore in revenue in FY24.
Rare Rabbit faces competition from companies such as Souled Store, which raised approximately $29 million and brought in Rs 235 crore in revenue in FY23. Additionally, in December 2023 and June of that same year, respectively, its rivals Snitch and WROGN raised $13 million and $15 million.
Several fashion and clothing companies have raised their first institutional round in the last few months. TechnoSport raised $21 million from a funding round led by A91 Partners in May, while Libas raised $18 million from ICICI Venture’s fund.
