Rare Rabbit Secures Rs 1.50 bn Funding from A91 Partners for Nikhil Kamath’s Gruhas

Inc42 estimates suggest that the funding has valued the startup at Rs 22 bn pre-money.

Rare Rabbit, the D2C fashion brand, has finally received the first installment of its Rs 5 billion investment after months of anticipation. As per the startup’s regulatory filing, it confirmed receiving Rs 1.50 bn from A91 Partners, Gruhas (Nikhil Kamath’s investment firm), and Ravi Modi’s family trust, among others. Inc42 estimates suggest that the funding has valued the startup at Rs 22 bn pre-money.

Last month, it was initially reported that Rare Rabbit aimed to secure Rs 5 bn in its debut funding round. The leading investors are identified as A91 Partners, with participation from Ravi Modi’s family office, founder of Vedant Fashions, and Nikhil Kamath, cofounder of Zerodha.

Reports indicated that the funding round involved a primary investment of Rs 2.50 bn, with the remaining funds allocated to a secondary transaction where Akshika and Manish Poddar, a husband-wife duo, would sell shares.

Founded in 2015 by Manish and Akshika Poddar, The House of Rare oversees operations for Rare Rabbit, as well as the women’s fashion wear brand Rareism and the everyday wear brand Articale.

In the financial year 2022-23 (FY23), the startup reported a significant surge in operating revenue, climbing 77 per cent year-on-year to Rs 3.76 bn. Net profit also saw a robust growth of 84 per cent, amounting to Rs 320.2 mn. Total expenditures for the year reached Rs 3.38 bn, marking a 72 per cent increase from the previous fiscal year’s Rs 1.96 bn.