House of Rare, the parent company of the prominent fashion brand Rare Rabbit, has posted remarkable financial results for the fiscal year ending March 31, 2023. The company reported a net profit of INR 32.2 crore, an impressive 84% increase from INR 17.5 crore in the previous fiscal year.
Rare Rabbit’s sales figures saw a substantial rise, reaching INR 376 crore in FY23. This marks a 77% year-on-year growth compared to INR 212.5 crore in FY22. Including other income, House of Rare’s total income stood at INR 381 crore, reflecting a 74% increase from INR 219 crore.
The company’s expenditure also saw significant growth, with total expenses amounting to INR 338.7 crore in FY23, a 72% increase from INR 196.6 crore in the previous fiscal year. The largest portion of this expenditure was attributed to the procurement of raw materials, which rose to INR 136 crore from INR 76.9 crore, a 77% increase.
Advertising costs were another major expense, accounting for nearly 20% of total expenses. In FY23, House of Rare spent INR 63.3 crore on advertising, up 51% from INR 42 crore in FY22.
Founded in 2015 by Manish Poddar and Akshika Poddar, House of Rare operates several fashion brands including Rare Rabbit, women’s fashion wear brand Rareism, and everyday wear brand Articale.
Also Read: SuperKalam Raises $2M in Seed Funding, Led by YCombinator and Fundersclub
The company’s strong financial performance comes at a time when it is reportedly in discussions to secure its first major funding round. House of Rare is looking to raise approximately $60 million, with the round likely to be led by A91 Partners and participation from the family offices of Ravi Modi, owner of Manyavar, and Nikhil Kamath.
This funding round is expected to be primarily for capital infusion, with a portion allocated for a secondary sale by the founders. The anticipated valuation for House of Rare post-funding is around $266 million.
Brand’s growth trajectory places it in direct competition with other burgeoning D2C fashion brands such as Bombay Shirt Company, Snitch, Damensch, and The Souled Store.
