D2C baby brand R for Rabbit raises $27 Mn led by Filter Capital and 3one4 Capital

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

The funding round, which included primary investment and a secondary share sale, saw early investor Xponentia Capital exit. The firm had invested around $4.5 million (₹40 crore) in 2021.

R for Rabbit said the funds will be used to drive growth, expand omnichannel distribution, boost product innovation, and enhance digital initiatives.

Read also- House of Biryan raises Rs 32 crore funding led by MS Dhoni, Bestvantage InvestmentsS

“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 chief executive Kunal Popat.

Sumit Sinha, cofounder and managing partner at Filter Capital, said, “We are bullish on the long-term potential of the baby care category in India. R for Rabbit stands out with its product innovation, high customer delight, and robust growth metrics.”

Anurag Ramdasan from 3one4 Capital added, “...we were seeking high-impact consumer brands with category leadership and scalability”.

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About R for Rabbit 

Founded in 2014 by husband-wife duo Kunal Popat and Kinjal Popat, R for Rabbit serves the baby products market with items like strollers, car seats, high chairs, and more. 

The company says it has over 2,000 offline partners and a customer base of 5 million+ parents.

The brand says it has seen 35%+ CAGR in revenue since FY21, with an annual run rate (ARR) for FY25 above $30 million. While FY25 numbers are yet to be filed, revenue from operations grew 31% YoY to ₹170 crore, with net profit of ₹2.21 crore during the year.