Rare Rabbit, India’s premium fashion brand, is in discussions with Tata Group’s Tata Capital for a substantial investment. Tata Capital aims to acquire a 13% stake in Rare Rabbit, led by Manish Poddar, valuing the company at $300 million (approximately ₹2499 crore). This move by the ₹144 billion Tata Group coincides with Reliance’s aggressive expansion into India’s premium fashion retail market.
According to Reuters, Tata Group has engaged in talks with Rare Rabbit and is currently in the due diligence phase after issuing a term sheet for a potential investment of up to $40 million. Rare Rabbit, founded by Manish Poddar in 2015 and backed by the family-run company Radhamani Textiles, has made a significant impact in India’s competitive market, offering men’s clothing priced between $20 and $80.
This potential investment marks Rare Rabbit’s first foray into raising capital through a stake sale. Adding to the intrigue, local Indian private equity fund A91 Partners is also reportedly eyeing a stake in the company, setting the stage for competition with Tata in sealing the deal.
