House of Rare Reports ₹818 Crore Revenue in FY25: Profit Declines Amid Rising Expenses
House of Rare Achieves ₹818 Crore Revenue in FY25 Despite Profit Dip
Indian fashion startup The House of Rare, founded by husband-wife duo Manish and Akshika Poddar, has reported a remarkable 35% revenue growth in FY25, reaching ₹818.67 crore, up from ₹605.78 crore in FY24. Despite this impressive topline expansion, profitability fell sharply, with net profit declining 60% to ₹16 crore.
The dip in profits is largely attributed to higher employee costs and aggressive marketing spending, reflecting the challenges of sustaining growth in India’s competitive fashion sector.
About The House of Rare
Founded in 2015, The House of Rare has positioned itself as a premium lifestyle and fashion brand catering to diverse consumer segments. Its key brands include:
Rareism – Women’s apparel
Rare Rabbit – Men’s fashion
Rare Ones – Children’s wear
Rare’z – Sneakers and casual footwear
The company has built a robust physical and digital presence, operating over 180 exclusive stores across India and more than 700 additional points of sale. Its online footprint includes its own e-commerce platform and partnerships with major marketplaces like Myntra and Ajio, allowing it to reach a wide demographic of urban shoppers.
In FY25, the brand also entered the quick commerce segment through a strategic partnership with Zepto, aiming to provide rapid delivery for fashion-conscious customers.
Funding Milestones
The House of Rare has successfully leveraged venture funding to fuel its growth. In February 2025, the company raised ₹50 crore from existing investor A91 Partners at a valuation of $279 million (₹2,534 crore). This followed an earlier ₹150 crore funding round in June 2024, also led by A91 Partners.
These investments have supported the brand’s retail expansion, marketing campaigns, and product diversification, helping it compete with other premium fashion players in India.
Financial Overview FY25
Nearly 99% of revenue in FY25 came from core fashion operations, totaling ₹808.39 crore, compared to ₹600.8 crore in FY24. However, expenses surged 44% to ₹799 crore, driven by:
Employee benefit expenses: ₹134.7 crore (16.8% of total expenses)
Advertising and marketing costs: ₹118.7 crore, up from ₹93 crore in FY24
Raw materials: ₹35 crore
Packaging: ₹16 crore
These rising costs squeezed profitability, resulting in a 59.7% decline in PAT, from ₹39.68 crore in FY24 to ₹16 crore in FY25. The company’s net cash flow from operations also turned negative at ₹71.14 crore, compared to a positive ₹45.77 crore in FY24.
Shareholding Structure
According to FY24 filings with the Registrar of Companies, Manish Poddar holds 47%, and Akshika Poddar holds 43.09% of the company. Other minority shareholders include Karam Poddar, Sahaat Poddar, and Manish Kumar Poddar & Sons (HUF), each holding 3.3%.
Challenges and Insights
The House of Rare’s FY25 performance highlights the complexities of scaling a premium fashion brand:
High marketing costs are necessary to maintain brand visibility in a competitive market
Employee benefits increase as the company expands its retail and operations footprint
Profit margins can be volatile, even with strong revenue growth
Yet, the company’s strategic investments in digital channels, quick commerce, and retail expansion indicate long-term growth potential.
FAQs
Who founded The House of Rare?
Manish and Akshika Poddar, in 2015.What brands are under The House of Rare?
Rareism, Rare Rabbit, Rare Ones, and Rare’z.What was the revenue for FY25?
₹818.67 crore, a 35% increase from FY24.Why did profits fall despite revenue growth?
Due to higher employee benefits and advertising expenses.Who are the investors?
A91 Partners has led multiple funding rounds, including ₹50 crore in February 2025.How many stores does the brand operate?
Over 180 exclusive stores and 700+ additional points of sale nationwide.Is The House of Rare available online?
Yes, via its website, Myntra, and Ajio.What is Rare’z?
The brand’s sneaker and casual footwear line catering to young consumers.What challenges does the brand face?
High marketing and employee costs, profit margin pressures, and competition in premium fashion.What is the long-term growth strategy?
Expansion through retail, e-commerce, and quick commerce, backed by strategic funding.
