House of Rare Secures Rs 50 Crore Funding from A91 Partners

House of Rare, operating under the brand name Rare Rabbit, has successfully acquired Rs 50 crore (approximately $6 million) from its current investor, A91 Partners. This new round of funding follows the company’s $18 million fundraising that occurred just seven months prior.

The company’s board has approved a special resolution to issue 23,073 preference shares, priced at Rs 21,670 each, to facilitate this funding, as indicated in its regulatory filing obtained from the Registrar of Companies.

In response to its financial strategy, the company increased its authorized share capital in January, emphasising the need for funds aimed at supporting expansion initiatives and working capital necessities, as outlined in an earlier resolution.

As a result of this recent funding, A91 Partners’ share in House of Rare has risen to 14.17%, up from 9.65% during the previous investment round. Startup Superb estimates that the funding has taken place at a flat valuation of $279 million for the Bengaluru-based fashion enterprise.

Overview of Rare Rabbit’s Growth and Market Position

Rare Rabbit is recognised as a premium fashion label that offers designer apparel for both men and women. The brand operates in more than 100 locations across India and also provides its collections through its online platform.

In terms of financial performance, Rare Rabbit reported a substantial 69% increase in revenue, rising from Rs 376 crore in FY23 to Rs 636 crore in FY24. Additionally, the company’s profits more than doubled, growing to Rs 74.6 crore in FY24, up from Rs 32.2 crore in FY23.

Competitive Landscape

Rare Rabbit faces competition from brands like Souled Store, which has secured around $30 million and achieved a revenue of Rs 355 crore in FY24. Other rivals such as Snitch and WROGN have also successfully raised $13 million and $15 million in funding in December 2023 and June, respectively.