Tata Capital is looking to purchase a roughly 13% stake in fashion brand Rare Rabbit at a valuation of $300 million, reported Reuters. As per the report, Tata is looking to bet on the country's affluent shoppers.
This likely investment by Tatas on Rare Rabbit comes at a time when its rivals such as billionaire Mukesh Ambani's Reliance Retail are also gravitating towards premium fashion offerings. As per Reuters, Tata has held talks with Rare Rabbit and is conducting due diligence after issuing a term sheet to invest up to $40 million to grab a stake in the niche fashion brand that sells men's shirts and other apparel. This stake sale talk is Rare Rabbit's first external fundraising exercise.
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The report also mentioned that in competition with Tata local Indian private equity fund A91 Partners is also eyeing a stake in the company.
Tata Capital is the financial services arm of India's $144 billion salt-to-aviation Tata conglomerate. Rare Rabbit was started in 2015 by an Indian family-run company Radhamani Textiles. It sells shirts, jeans, jackets and sneakers that are priced as low as $20 and all the way up to the high-end range for most Indians at $80. The company has 90 retail outlets in India. It also sells its products online.