Velocity Launches Rs 400 Crore Fund to Support D2C and E-commerce Brands
Velocity, a Bengaluru-based cash flow-based financing platform, has announced the launch of a Rs 400 crore fund to support D2C and e-commerce brands in the forthcoming festive season sales. This is an increase from the Rs 250 crore fund the company had launched for the previous festive season.
The financing platform, which has partnerships with major e-commerce platforms such as Amazon, Flipkart, Myntra, and Shopify, as well as new-age quick commerce platforms like Blinkit, Instamart, and Zepto, aims to support brands in enhancing their product assortment, accelerating delivery timelines, and capitalizing on emerging trends such as premiumization. The fund will enable brands to invest in inventory, marketing, and operational expenses without diluting their equity.
E-commerce sales are expected to see a 20% growth in the 2024 festive season, as per market research, compared to 13% growth in e-commerce GMV (gross merchandise value) last year. Velocity has partnered with leading e-commerce marketplaces and ecosystem enablers across various sectors, including beauty and personal care, apparel and fashion, consumer electronics, food and beverages, home and kitchen, jewelry, and healthcare.
Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity has been at the forefront of democratizing access to working capital for various sectors. The platform leverages digital-first businesses’ data and online cash flows to offer innovative financing solutions, providing non-dilutive debt financing to e-commerce founders.
Since its inception, Velocity has empowered over 1,500 e-commerce brands, including Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower, among others, with over Rs 900 crores in disbursements. The platform has also raised $30 million in equity funding led by Valar Ventures and competes with other players in this space, including GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX.
