New Delhi: Rare Rabbit, India’s premium fashion brand, may get an investment from the Tata Group’s Tata Capital at a whopping valuation. Tata Capital is looking to purchase 13 percent of the Manish Poddar-led Rare Rabbit at a valuation of $300 million (roughly ₹2499 crore), Reuters reported. Tata Capital is part of the 144 billion Tata Group.
The Tata Group’s action comes at a time when Mukesh Ambani’s Reliance is aggressively expanding into India’s premium fashion retail market.
The news agency, quoting three sources, said the Tata Group had held talks with the company. It is currently conducting due diligence after issuing a term sheet to invest up to $40 million.
Rare Rabbit is a recent entrant in India’s saturated market but it has made a mark. It sells men’s shirts and other clothes.
It was founded by Manish Poddar in 2015.
The force behind is the family-run company Radhamani Textiles.
The company is present in 90 retail destinations. It also has a formidable online presence.
It directly completes with foreign brands like Tommy Hilfiger and Japan’s Uniqlo.
It will be Rare Rabbit’s first attempt to raise capital via stake sale.
Local Indian private equity fund A91 Partners is also eyeing a stake in the company and competing with Tata for a deal, the three sources said. A91 declined to comment, reported Reuters.
