R for Rabbit, a D2C baby products brand, has raised Rs 40 Cr or $5.3 million in a new round drove by Xponentia Capital Partners.

According to the Ahmedabad-based startup, the assets will be utilized to strengthen its brand, ramp up distribution and operations in the homegrown market, enhance its existing product portfolio and introduce new categories of products.

Established by Kunal Popat, R for Rabbit provides a range of baby products created by putting in special concentration and understanding to the necessities of both, the parents and the kid.

Since 2014, R for Rabbit claims that it has grown its business across platforms, and in the coming years the company hopes to invest in various new product categories. The company is relied upon to clock an annual run rate of around Rs 100 crores in the current financial year through online and offline channels.