Exclusive: R for Rabbit to raise $27 Mn in primary and secondary capital

D2C baby products brand R for Rabbit is raising Rs 110 crore (around $13 million) primary capital in a Series B round led by Filter Capital, with participation from 3one4 Capital.

As per the company’s regulatory filings sourced via the Registrar of Companies, the board passed a special resolution to issue 1,839 Series B CCPS at an issue price of Rs 5,98,202 per share to raise the above sum.

Filter Capital will lead the primary round with an infusion of Rs 70 crore, while 3one4 Capital will chip in with Rs 40 crore in the new round.

Alongside the primary round, the company also facilitated a secondary transaction, enabling early investor Xponentia Capital to fully exit with Rs 120 crore, according to regulatory filings reviewed by Entrackr. 

The exit was led by 3one4 Capital. As per estimates, Xponentia earned a 3X return on its investment in 2021.

Prior to the Series B round, R for Rabbit has secured a total of Rs 40 crore from Xponentia Capital partners. In 2023, Negen Capital also invested in the direct-to-customer baby care brand.

R for Rabbit declined to comment on the story, while queries sent to 3one4 Capital remained unanswered at the time of publishing.

The company will use the funds for the expansion of the business, the filing further added. According to Entrackr’s estimates, R for Rabbit has been valued at approximately Rs 850 crore ($100 million) post-money.

Post this round, 3one4 Capital has emerged as the largest external stakeholder with a 14.12% stake, followed by Filter Capital at 10.6%. 

Founded by husband-wife duo Kunal and Kinjal Popat, R for Rabbit caters to the baby products segment with a wide range of offerings, including strollers, car seats, high chairs, and more. According to its website, the company has more than 2,000 offline channel partners and has a customer base of more than 5 million parents.

While R for Rabbit has yet to file its FY25 number, its revenue from operations grew 31% year-on-year to Rs 170 crore, with the net profits of Rs 2.21 crore during the fiscal year ended March 2024 (FY24).