Direct-to-consumer baby products brand R for Rabbit has nearly doubled its revenue over the past two years, reaching ₹251 crore in FY25 from ₹128 crore in FY23. Despite the rapid scale-up, the company managed to maintain a near break-even financial position during the fiscal year ended March 2025.
According to consolidated financial statements filed with the Registrar of Companies (RoC), R for Rabbit’s operating revenue grew 47.6% year-on-year to ₹251 crore in FY25 from ₹170 crore in FY24.
Strong Growth in Baby Products Segment
Founded by husband-wife duo Kunal Popat and Kinjal Popat, the Ahmedabad based brand offers a wide range of baby care products including strollers, car seats, high chairs, and other childcare essentials.
Product sales remained the sole revenue stream for the company. According to its website, R for Rabbit serves more than 5 million parents and works with over 3,000 offline retail partners across India.
Cost Structure and Expansion
Material procurement remained the largest expense for the company, accounting for 62% of total costs. This cost increased 40% to ₹155 crore in FY25 as the company expanded its product distribution.
Employee benefit expenses rose 37.5% during the year, while marketing and advertising spending increased sharply by 60% to ₹24 crore. Additional costs including freight, legal, audit, and miscellaneous expenses pushed total expenditure up 48.2% to ₹252 crore in FY25.
Near Break-Even Despite Rapid Scaling
Even with aggressive expansion and rising costs, the company reported only a marginal loss of ₹14 lakh in FY25, indicating disciplined cost management.
On a unit basis, R for Rabbit spent roughly ₹1 to generate every rupee of revenue. The company’s EBITDA margin stood at 2.33%, while ROCE was reported at 9.53%.
Funding and Outlook
R for Rabbit has raised approximately $32 million in funding to date, including a $23 million Series B round at a $100 million valuation.
As India’s baby care market shifts toward branded and safety certified products, the company appears well positioned to expand both online and offline while maintaining a capital efficient growth strategy.
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