Rare Rabbit is a high-end fashion brand that has been expanding quickly in recent years. In the fiscal year that ended in March 2024, its revenue increased by more than 69%. Concurrently, the company's profit increased by 2.3 times, reaching Rs 70 crore in the same time frame (FY24). According to Rare Rabbit's financial statement obtained from the Registrar of Companies (RoC), the company's operating revenue climbed from Rs 376 crore in FY23 to Rs 637 crore in FY24.

The House of Rare runs the men's fashion line Rare Rabbit. The brand was established in 2015 and sells a variety of apparel, such as jackets, pants, T-shirts, shirts, and polos. The company's main source of income was product sales. In FY24, the company's total revenue was Rs 642 crore, including Rs 5 crore from interest income.

The primary cost, material expenses, rose 53% to Rs 208.4 crore on the expense front. While advertising costs rose by 45% to Rs 93 crore, employee benefit costs soared by 95% to Rs 78 crore. Additionally, commission and rent costs went up by 58% and 62%, respectively. Overall, Rare Rabbit's expenses increased from Rs 339 crore in FY23 to Rs 542 crore in FY24, a 59.9% increase.

Rare Rabbit's profit increased 2.3 times to Rs 75 crore in FY24 from Rs 32 crore in FY23 as a result of its revenue growth exceeding its expenses. While the return on capital employed (ROCE) rose from 42.02% in the prior fiscal year to 52.15% in FY24, the EBITDA margin improved from 14.7% to 19%.

In the previous fiscal year, Rare Rabbit spent Rs 0.85 for every rupee earned. With current assets of Rs 349.5 crore as of March 2024, the company has Rs 2 crore in cash and bank deposits. As per a credible report, Rare Rabbit has raised over $24 million in fundraising to date, including the most recent funding round of Rs 50 crore from its current main investor, A91 Partners.

If you were a casual observer of the industry, Rare Rabbit's popularity and presence would have almost been unnoticed. The men's brand, which has a women's line called Rare is and a children's line called Rare Ones, has been operating slowly but steadily without providing the ongoing discounts that many of its competitors had. Ten years after its introduction, the brand is in a very solid position, suggesting that the premium positioning eventually worked.

Will the House of Rare continue to operate independently? Our prediction is that it will, at least until FY25 results are out, which might push the brand above the 1000 crore mark. A unicorn valuation will be one of the benefits of remaining uncommon at that point, if it continues to be successful.