Tata Capital eyes fashion brand Rare Rabbit at $300 million valuation: Report

 – Gudstory

Tata Capital eyes fashion brand Rare Rabbit at $300 million valuation: Report – Gudstory

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India’s Tata Capital is looking to buy about a 13% stake in premium domestic fashion brand Rare Rabbit at a valuation of $300 million as it looks to bet on the country’s affluent buyers, three sources familiar with the matter said.

Tata Capital is the financial services arm of India’s $144 billion salt-to-aviation Tata Group, and its investment interest in Rare Rabbit comes at a time when its rivals such as billionaire Mukesh Ambani’s Reliance are also moving towards premium fashion offerings. Are.

Tata is in talks with Rare Rabbit and is conducting due diligence after issuing a term sheet to invest up to $40 million to acquire a stake in the niche fashion brand that sells men’s shirts and other apparel, three sources said. Has been.

Rare Rabbit founder Manish Poddar and Tata Capital declined to comment.

The sources declined to be named as the conversation was private.

Rare Rabbit was started in 2015 by Radhamani Textiles, an Indian family-run company, and sells shirts, jeans, jackets and sneakers that cost less than $20 and reach the high-end range of $80 for most Indians. Till then. The company sells its products online and has 90 retail outlets across India.

India’s fashion and apparel sector has attracted big Indian and foreign brands in recent years, from Tommy Hilfiger to Japan’s Uniqlo. Retailers like Reliance and Tata Group also run their own retail chains targeting the fast growing middle class segment by selling mid-range clothing from their outlets across the country.

The ongoing stake sale talks are Rare Rabbit’s first external fundraising process.

Local Indian private equity fund A91 Partners is also eyeing a stake in the company and is competing with Tata for the deal, three sources said. A91 declined to comment.

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Published: 14 Dec 2023, 01:20 PM IST

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