Tata Capital Targets Rare Rabbit Fashion Brand At $300 Mn Valuation
Tata Capital is eyeing a potential acquisition of about 13 per cent in the upscale Indian fashion label Rare Rabbit at an estimated valuation of USD 300 million, sources familiar with the matter revealed.
As the financial services wing of India's vast Tata conglomerate, Tata Capital's interest in Rare Rabbit aligns with the growing focus on high-end fashion among the nation's affluent consumers, mirroring similar moves by competitors like Reliance led by Mukesh Ambani.
Reportedly, Tata Capital has engaged in discussions and initiated due diligence, having proposed an investment of up to USD 40 million through a term sheet. This investment aims to secure a stake in the specialised fashion brand known for its range of men's apparel, including shirts.
Rare Rabbit, established in 2015 under Radhamani Textiles, offers a spectrum of clothing, from affordable items priced at USD 20 to luxury products reaching USD 80, catering to the Indian market. Presently, the brand operates online and boasts 90 retail stores across India.
India's fashion industry has seen significant interest from both domestic and international players in recent times, attracting renowned brands like Tommy Hilfiger and Uniqlo from Japan. Major retailers such as Reliance and Tata Group have also targeted the burgeoning middle-class demographic through their retail chains, offering mid-range clothing across the country.
These discussions mark Rare Rabbit's initial external fundraising venture. Additionally, reports suggest that local Indian private equity firm A91 Partners is vying for a stake in the company, joining Tata in the potential deal. However, A91 declined to comment on these reports.
