SUMMARY
- Velocity has launched a fund totaling Rs 400 crore aimed at supporting D2C and e-commerce brands for the festive season.
- It facilitated a Rs 250 crore fund in the festive season of 2023.
- The fund will enable brands to invest in inventory, marketing, and operational expenses without compromising their equity.
Velocity, a leading cash flow-based financing platform, has launched a fund totaling Rs 400 crore ($48 million) aimed at supporting D2C and ecommerce brands during the forthcoming festive season sales.
Building upon its success in the previous festive season of 2023, where it facilitated a Rs 250 crore fund, Velocity is poised to extend its support to brands and sellers across major e-commerce platforms, including Amazon, Flipkart, Myntra, and Shopify, as well as emerging platforms such as Blinkit, Instamart, Zepto. This initiative is designed to enhance product assortments, expedite delivery timelines, and capitalize on emerging trends, particularly in the premiumization of products. The fund will enable brands to invest in inventory, marketing, and operational expenses without compromising their equity, as stated in a press release.
Market research indicates that ecommerce sales are expected to experience a 20% growth in the festive season of 2024, marking a significant increase from the 13% growth in their GMV (gross merchandise value) observed in the previous festive season.
The Bengaluru-based company, with its extensive engagement with the largest ecommerce marketplaces and a network of ecosystem enablers, is well-positioned to meet the demand for festive sales across various sectors, including beauty and personal care, apparel/fashion, consumer electronics, food and beverages, home, garden, and kitchen, jewelry and accessories, healthcare, and other e-commerce categories.
Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity is dedicated to democratizing access to working capital for a diverse range of sectors. The platform utilizes the data and online cash flows of digital-first businesses to offer innovative financing solutions, providing non-dilutive debt financing to ecommerce founders.
The company has leveraged its partnerships with India’s leading NBFCs and regulated entities to support over 1,500 e-commerce brands, including Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower, among others. It has also facilitated over Rs 900 crore in funding, enabling the growth of over 1,500 businesses, with a particular focus on D2C and e-commerce companies.
In its goal to expand its reach, Velocity has secured $30 million in equity funding led by Valar Ventures, competing with other prominent players in the market, such as GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX.
