Homegrown premium fashion label Rare Rabbit, which raised its first external funding this year, zoomed past the Rs 600-crore revenue milestone in FY24 while its net profit more than doubled.
Bengaluru-based Radhamani Textiles, which owns men’s fashion brand Rare Rabbit and women’s brand Rareism, closed FY24 with Rs 637 crore in operating revenue – a year-on-year jump of 69%.
Its net profit expanded to Rs 75 crore during the year ended March 2024, compared to Rs 32 crore in FY23, according to the company’s financial statements sourced from Tofler.
These numbers underscore the strong growth recorded by the brand in FY24 – at a time when several other scaled-up brands in the fashion space were impacted by a macroeconomic consumption slowdown.
Aditya Birla Fashion & Retail’s lifestyle business segment, which houses premium brands including Louis Philippe, Allen Solly, Van Heusen and Simon Carter, reported revenue of Rs 6,560 crore for FY24, a 1% dip from FY23.
In May, ET had reported that the firm closed its maiden institutional funding round of Rs 500 crore, raising capital from the A91 Partners, Zerodha cofounder Nikhil Kamath and the family office of Ravi Modi, founder of Vedant Fashions that runs ethnic fashion brand Manyavar. It was valued at around Rs 2,600 crore during the round.
Besides Rare Rabbit, which is the flagship brand, and Rareism, Radhamani Textiles also has an everyday wear brand, Articale. Founded in 2015, the company is run by the husband-wife duo of Akshika and Manish Poddar. While Manish is the creative director for Rare Rabbit, Akshika manages Rareism.
Radhamani Textiles was earlier an apparel manufacturer with a key focus on export markets. The company supplied fashion products to large brands, including global ones such as Inditex, the European fast fashion group that owns Zara, and later transitioned into having its own brands.
During the year, Rare Rabbit expanded aggressively on its store footprint, with the bulk of its revenue coming from the offline channel.
The brand has more than 150 stores across India. A number of these are present in tier-II and tier-III cities such as Ahmedabad, Bhopal, Dehradun, Ranchi, Guwahati and Vijayawada, in addition to metros such as Delhi, Bengaluru, Mumbai, Hyderabad and Chennai.
ET reached out to Manish Poddar for a comment but received no response.
In FY24, Rare Rabbit incurred a total expenditure of Rs 542 crore, an increase of 60% year-on-year. During the year, it amped up its spending on advertising, towards which it incurred costs of Rs 92 crore – a 46% jump from FY23.
Its Ebitda for fiscal 2024 came in at Rs 117 crore – a significant improvement from Rs 51 crore in FY23.
Rare Rabbit competes with Aditya Birla Fashion & Retail’s Louis Phillippe, American fashion label Tommy Hilfiger, which is operated in India by Arvind Ltd; British fashion retailer Marks and Spencer, run by Reliance Retail in India; and other new-age brands such as Bombay Shirt Company, which is backed by Singularity Growth and CaratLane founder Mithun Sacheti.
