Rare Rabbit secures $18 million in funding from A91 Partners, the founders of Zerodha, and other investors.

New-age fashion brand Rare Rabbit has secured Rs 150 crore (approximately $18 million) in primary capital from A91 Partners, marking its first institutional investment since its founding in Bengaluru in 2015. According to regulatory filings from the Registrar of Companies, the board at Rare Rabbit approved a special resolution to issue 69,230 compulsory convertible preference shares at Rs 21,670 each to raise the funds.

A91 Partners contributed Rs 102 crore to the round, with Zerodha’s founders NKSquared adding Rs 29 crore. Additionally, Gruhas Proptech, Ravi Modi Family Trust, and Vendant Modi together invested Rs 18.92 crore. Estimates by TheKredible value the company at around Rs 2,350 crore or $283 million post-investment.

Following this funding, the A91 emerging fund will hold a 9.65% stake in the company, while NKSquared and Ravi Modi Family Trust will own 4.15% and 2.13% respectively. This investment is part of a larger round, as Rare Rabbit is reportedly seeking to raise Rs 500 crore, primarily led by A91 Partners. The development was first reported by Inc42.

Rare Rabbit, a high-end fashion brand offering designer clothing for men and women, operates over 100 stores across India and also sells its collections online. The brand has shown significant growth, with revenue increasing by 72.3% to Rs 381 crore in FY23 and achieving a positive net income of Rs 32 crore for the same period. The company reportedly reached a revenue of Rs 600 crore in FY24.

Rare Rabbit competes with brands such as Souled Store, which raised approximately $29 million and generated Rs 235 crore in revenue in FY23, as well as 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 first institutional funding rounds. For instance, A91 Partners led a $21 million round in TechnoSport in May, while Libas raised $18 million from ICICI Venture’s fund.