We are discussing D2C Fashion Startup Rare Rabbit Raised $18 Million in a Round Led by A91 Partners, Nikhil Kamath’s Gruhas:
Rare Rabbit is a D2C fashion brand that secured Rs 150 crore ($18 million) as the first tranche of its Rs 500 crore investment. The firm raised $18 million in a round led by an investment firm Gruhas, A91 Partners, and Ravi Modi’s family trust, among others. Inc42 estimated that this funding round was held at a pre-money valuation of $264 million.
The firm planned to secure Rs 500 crore through its maiden funding round led by A91 Partners. The round had participation from Ravi’s family office, Zerodha co-founder Nikhil Kamanth, and Founder of Vedant Fashions. The funding round will see a primary fusion of Rs 250 crore, and the remaining investment will be carried out in a second transaction. The second tranche will have major participation from husband-wife duo Manish Poddar and Akshika, where they will sell shares. The company plans to use these fresh proceeds to enhance its platform for better user experience, market expansion, scale its operations, and general corporate purposes.
This D2C fashion startup is part of “The House of Rare” and offers fashion and everyday wear brands. The company aims to provide its wearer with various personalities in a clothing brand. The startup claims to provide a fashionable, bold, modern, and emotional collection of ethnic and fashion wear created by integrating them with current fashion trends worldwide. The brand competes with other D2C fashion startups, including Snitch, The Souled Stone, Bombay Shirt Company, and Damensch.
The startup reported a 77 percent year-on-year increase in its operating revenue to Rs 376 crore, while the net profit jumped by 84 percent to Rs 32.2 crore in FY23. The total expenditure also increased by 72 percent to Rs 338.7 crore during the same duration. The company mentioned a revenue of Rs 600 crore for this fiscal year and expects an increase in FY25. The fashion e-commerce market will reach over $112 billion in the next five years. Earlier this year, a D2C fashion ethnic startup, Libas, secured Rs 150 crore in a funding round led by ICICI Ventures. A known fashion brand, Meesho, also closed its first funding round at $275 million.
Conclusion
D2C fashion startup Rare Rabbit secured Rs 150 crore at a pre-money valuation of $264 million. The firm raised $18 million in a round led by an investment firm Gruhas, A91 Partners, and Ravi Modi’s family trust, among others. The company plans to use this fund to enhance its platform for better user experience, scale up operations, and general corporate purposes while aiming for expansion in the fashion market. The funding round will see a primary fusion of Rs 250 crore.
The remaining investment will be carried out in a second transaction via Manish Poddar and Akshika, selling their shares. The startup claims to provide a fashionable, bold, modern, and emotional collection of ethnic and fashion wear created by integrating them with current fashion trends worldwide.
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