Rare Rabbit secures USD 18 million (INR 150 crores) investment led by A91 Emerging Fund
Khaitan & Co provided legal counsel to RADHAMANI TEXTILES PRIVATE LIMITED (Rare Rabbit) and its founders, the Poddar family, during an investment from A91 Emerging Fund II LLP, Nikhil Kamath of NKSquared, Gruhas Proptech, and the family office of Manyavar founder Ravi Modi.
The deal team of Khaitain included Partner Purti Minawala, Principal Associate Aman Anand, Shruti Kunisetty, and Shravan Subramanyam, with assistance from Partner Deepak Kumar and Senior Associate Archika Dudhwewala (Employment Law)
According to regulatory filings from the Registrar of Companies, Rare Rabbit’s board has approved a special resolution to issue 69,230 compulsory convertible preference shares at an issue price of ₹21,670 each, aiming to raise ₹150 crore.
A91 Partners led the investment round with ₹102 crore, while the founders of Zerodha, through NKSquared, contributed ₹29 crore. Additionally, Gruhas Proptech, the Ravi Modi Family Trust, and Vendant Modi collectively invested ₹18.92 crore.
Following the investment, A91 Emerging Fund will own a 9.65% stake in Rare Rabbit, with NKSquared and the Ravi Modi Family Trust holding 4.15% and 2.13%, respectively.
This funding is part of a larger initiative, with Rare Rabbit reportedly seeking to raise ₹500 crore, spearheaded by A91 Partners, according to Inc42.
Rare Rabbit is a premium fashion brand known for its designer clothing for men and women, operating over 100 stores across India and offering products online. The brand has shown impressive growth, with revenue increasing by 72.3% to ₹381 crore in FY23 and a positive net income of ₹32 crore. The company is projected to achieve ₹600 crore in revenue for FY24.
The company competes with brands like Souled Store, which raised approximately $29 million and generated ₹235 crore in revenue in FY23. Other competitors include Snitch and WROGN, which secured $13 million and $15 million in December 2023 and June, respectively.
Share your news, articles, deals, columns, or press releases with us! Click the link to submit and join our platform today.
