Tata Capital is looking to purchase a roughly 13 per cent stake in premium domestic fashion brand Rare Rabbit at a valuation of $300 million as it seeks to bet on the country’s affluent shoppers, three sources familiar with the matter said.

Tata Capital is the financial services arm of India’s $144 billion salt-to-aviation Tata conglomerate, and its investment interest in Rare Rabbit comes at a time its rivals such as Reliance are also gravitating towards premium fashion offerings.

The three sources said Tata has held talks with Rare Rabbit and is conducting
due diligence after issuing a term sheet to invest up to $40 million to grab a stake in
the niche fashion brand that sells men’s shirts and other apparel.

Rare Rabbit founder Manish Poddar and Tata Capital declined to comment.

Rare Rabbit was started in 2015 by an Indian family-run company Radhamani Textiles, and sells shirts, jeans, jackets and sneakers that are priced as low as $20 and all the way up to the high-end range at $80.