Rare Rabbit Sets a New Benchmark with Nikhil Kamath

Rare Rabbit, a new-age men’s apparel and fashion brand is set to close its first-ever institutional funding round of Rs 500 crore. This significant investment round is led by A91 Partners, with notable contributions from Ravi Modi of Manyavar and Nikhil Kamath, co-founder of Zerodha. According to The Economic Times, this round marks a pivotal moment for Rare Rabbit, which has been self-funded up until now.

The funding round includes a collective contribution of around Rs 150 crore from Modi’s family office and Kamath, with A91 Partners providing the remaining Rs 350 crore. Of the total Rs 500 crore, approximately Rs 250 crore will serve as primary capital for the company. The balance amount will be a secondary share sale by Akshika and Manish Poddar, the husband-wife team behind Rare Rabbit. This substantial investment values the company at an estimated Rs 2,200 crore.

Rare Rabbit has shown a remarkable growth trajectory, reporting a revenue of over Rs 600 crore in fiscal 2024, with an operating profit surpassing Rs 100 crore. This represents a significant increase compared to FY23’s revenue of Rs 376 crore, reflecting a year-on-year revenue surge of over 60%. Industry insiders attribute this growth to the rising trend of premiumization in the men’s fashion sector, which has driven substantial revenue gains for premium brands in formal wear, casual shirts, denim, and trousers.