D2C baby products brand R for Rabbit has experienced significant growth, nearly enhancing its scale from Rs 128 crore in FY23 to about Rs 250 crore in FY25. Despite this swift expansion, the company maintained a nearly break-even status during the last fiscal year. R for Rabbit’s operational revenue rose by 47.6% year-on-year to Rs 251 crore in FY25 from Rs 170 crore in FY24, as indicated by its consolidated financial statements obtained from the Registrar of Companies.
Founded by the husband-wife pair Kunal and Kinjal Popat, R for Rabbit is active in the baby products segment, offering a diverse range, including strollers, car seats, high chairs, and various childcare essentials. Sales of these products served as the company’s only income source. As per its website, the business collaborates with over 3,000 offline channel partners and caters to a customer base of mehr than 5 million parents.
For the Ahmedabad-based entity, material costs comprised the largest portion of expenses, accounting for 62% of overall costs. In alignment with its growth, these costs surged by 40% to Rs 155 crore in FY25. At the same time, expenses related to employee benefits rose by 37.5% in the same timeframe.
Marketing and advertising expenditures saw a 60% year-on-year increase, reaching Rs 24 crore, while other operational costs, including freight, legal, auditor, and miscellaneous expenses, drove total costs up by 48.2%, increasing from Rs 170 crore in FY24 to Rs 252 crore in FY25. Despite the substantial revenue growth, nearly doubling within two years, R for Rabbit reported a minimal loss of Rs 14 lakh in the preceding fiscal year.
On a unit basis, the company expended Rs 1 to generate Rs 1 in FY25. Its Return on Capital Employed (ROCE) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins stood at 9.53% and 2.33%, respectively. As of March 2025, R for Rabbit reported total current assets of Rs 115 crore, which included cash and bank reserves amounting to Rs 12 crore.
R for Rabbit has accumulated approximately $32 million in funding to date, including a $23 million primary and secondary Series B round, valued at $100 million. This was exclusively reported by Startup Superb during the investment round. While many D2C brands depend heavily on venture funding for growth, R for Rabbit’s steady scaling and controlled loss levels underscore a more capital-efficient strategy. As the Indian baby care market increasingly gravities towards branded, safety-certified products, the company appears well-positioned for further expansion online and offline.
