Cash flow-based financing platform Velocity has announced the launch of a Rs 400 crore ($48 million) fund designed to bolster direct-to-consumer (D2C) and e-commerce brands during the upcoming festive season sales. This initiative marks a significant increase from last year’s Rs 250 crore fund, reflecting the growing demand and opportunities within the sector.
The newly launched fund will support brands and sellers across major e-commerce platforms like Amazon, Flipkart, Myntra, and Shopify and emerging quick commerce platforms such as Blinkit, Instamart, and Zepto. The financing will enable these businesses to enhance their product assortment, expedite delivery timelines, and tap into emerging trends like premiumization. With this funding, brands can invest in inventory, marketing, and operational expenses without diluting their equity, providing a critical boost ahead of the high-stakes festive period.
Market research indicates that e-commerce sales in India are expected to grow by 20% during the 2024 festive season, up from a 13% growth in gross merchandise value (GMV) the previous year. Velocity’s fund is strategically timed to help brands capitalize on this anticipated surge in demand, particularly across sectors such as beauty and personal care, fashion, consumer electronics, food and beverages, home and kitchen, jewellery, healthcare, and more.
Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity aims to democratize access to working capital for digital-first businesses. The platform leverages data and online cash flows to offer innovative, non-dilutive financing solutions, allowing e-commerce founders to secure debt financing without giving up equity.
Since its inception, Velocity has forged partnerships with leading non-banking financial companies (NBFCs) and regulated entities in India, empowering over 1,500 e-commerce brands such as Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower. The platform has disbursed over Rs 900 crore in funding, supporting businesses across a wide range of e-commerce categories.
Velocity has raised $30 million in equity funding, led by Valar Ventures, and competes with other players in the space such as GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX. With the new Rs 400 crore festive season fund, Velocity is poised to strengthen further its position as a key growth enabler for India’s burgeoning D2C and e-commerce ecosystem.
