R For Rabbit Mops Up $27 Mn To Boost Baby Products Portfolio

D2C baby products brand R For Rabbit has raised $27 Mn (around INR 234 Cr) in its Series B funding round co-led by Filter Capital and 3one4 Capital.

The round was a mix of both primary capital infusion and secondary share sale, marking the exit of early backer Xponentia Capital, which had pumped in INR 40 Cr in 2021.

The startup plans to channel the fresh capital into scaling operations, expanding distribution networks, innovating products and advancing digital initiatives.

Launched in 2014 by husband-wife duo Kinjal and Kunal Popat, R for Rabbit offers baby care products such as strollers, car seats, baby gears, ride-on, nursing and feeding equipment, activity and bathing toys, tricycles and prams, baby bathtubs, mini washing machines, among others. 

“This capital will help us double down on innovation, reach and customer experience as we enter our next growth chapter. We are grateful to Xponentia for their invaluable support and are excited to partner with Filter Capital and 3one4 Capital, who share our vision of reshaping modern parenting,” said Kunal.

R for Rabbit claims to have a network of more than 2,000 channel partners in India’s offline market, while also maintaining an online presence through Amazon, Flipkart, FirstCry, Mothercare, Croma and its own website.

The D2C brand reported INR 171.6 Cr in revenue in the financial year 2023-2024 (FY24). It reported INR 2.6 Cr in net profit in FY24. 

Surge In Investor Interest Drives Baby Care Market Growth

R for Rabbit’s recent funding comes as India’s baby care market grows, driven by a rising urban population, greater focus on infant health and heightened investor interest. 

In the child care space, the startup competes with the likes of Bumtum, All Things Baby and FirstCry, among others. 

Its industry peer Bumtum’s parent Millenium Babycares raised INR 122 Cr in a private placement round from Pantomath Capital-managed Bharat Value Fund (BVF) last year.

In November 2024, D2C mom and baby care brand All Things Baby raised INR 30 Cr in a Series A funding round from Inoventures and the director of the family office Richa Choksi.

In the same month, content-to-commerce Unicorn The Good Glamm Group completed the acquisition of D2C mom and baby care brand The Moms Co. The Good Glamm Group initially acquired a majority stake in the babycare brand in 2021 to strengthen its growth across South Asia.

Earlier this year, Inc42 reported that FMCG major ITC will be acquiring an additional 73.5% stake in Mother Sparsh Baby Care, making the D2C natural baby care brand its wholly-owned subsidiary. The deal aligns with ITC’s strategy, which focuses on building a portfolio of consumer-centric, purpose-led brands, especially in high-growth and digital-first segments. 

The surge in acquisitions within the baby care segment points to its rising profitability, with leading startups ramping up investments to maximise earnings.

India’s baby care products market size is projected to grow at a CAGR of 17.25% reaching a value of $ 38.51 Bn by 2029, as per BlueWeave Consulting’s report. Notably, the global baby products market size was estimated at $320.65 Bn in 2023 and is projected to reach $ 475.15 Bn by 2030, growing at a CAGR of 5.9% from 2024 to 2030.