R for Rabbit raises $27 Mn led by Filter Capital and 3one4 Capital

Direct-to-consumer (D2C) baby products brand R for Rabbit has raised a $27 million round co-led by growth investment firm Filter Capital and early-stage venture capital firm 3one4 Capital.

Entrackrexclusively reported this development last month.

The round, comprising primary capital infusion and a secondary share sale, marked the exit of early backer Xponentia Capital, a private equity firm that had invested about $4.5 million (about Rs 40 crore) in the firm in 2021.

The proceeds will be used to fuel growth, strengthen omnichannel distribution, enhance product innovation, and expand digital initiatives, R for Rabbit said in a press release.

Co-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.

“India’s babycare industry is on a strong upward curve. With rising disposable incomes and discerning parents seeking uncompromised safety and quality, the market is ripe for brands that can deliver on those expectations,” said Kunal Popat, co-founder & CEO of R for Rabbit.

The brand claims to have recorded a revenue compound annual growth rate of over 35% since FY21, with its annual run rate (ARR) for FY25 surpassing $30 million. While R for Rabbit has yet to file its FY25 number, its revenue from operations grew 31% year-on-year to Rs 170 crore in FY25, with the net profits of Rs 2.21 crore during the fiscal year.