D2C baby products brand R for Rabbit has nearly doubled its scale over the past two years, growing from Rs 128 crore in FY23 to around Rs 250 crore in FY25. Despite the rapid expansion, the company managed to maintain a near break-even position during the last fiscal year.
R for Rabbit's revenue from operations increased 47.6% year-on-year to Rs 251 crore in FY25 from Rs 170 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies.
Founded by husband-wife duo Kunal and Kinjal Popat, R for Rabbit operates in the baby products segment with a wide portfolio that includes strollers, car seats, high chairs, and other childcare essentials. Revenue from the sale of products remained the company's sole source of income.
According to its website, the company has more than 3,000 offline channel partners and serves a customer base of over 5 million parents.
For the Ahmedabad-based company, the cost of materials consumed remained the largest expense, accounting for 62% of total costs. In line with its scale, this cost rose 40% to Rs 155 crore in FY25. Meanwhile, employee benefit expenses increased 37.5% during the same period.
The company's marketing and advertising expenses jumped 60% year-on-year to Rs 24 crore, while other overheads, including freight, legal, auditor, and miscellaneous costs, pushed total expenses up by 48.2% to Rs 252 crore in FY25 from Rs 170 crore in FY24.
Despite the aggressive growth, where the company nearly doubled its revenue in two years, R for Rabbit remained close to breakeven, reporting a marginal loss of Rs 14 lakh in the last fiscal year.
On a unit level, the company spent Rs 1 to earn a rupee in FY25. Its ROCE and EBITDA margins stood at 9.53% and 2.33%, respectively. As of March 2025, the company reported total current assets of Rs 115 crore, including cash and bank balances of Rs 12 crore.
R for Rabbit has raised around $32 million in funding to date, including a $23 million primary and secondary Series B round at a valuation of $100 million, which was exclusively reported by Entrackr at the time.
While many D2C brand segments have relied heavily on venture funding to fuel growth, R for Rabbit's steady scale and controlled losses highlight a more capital-efficient approach. As India's baby care market continues to shift toward branded and safety-certified products, the company could have enough room to expand both online and offline.