Velocity is a revenue-based financing platform that announced its plans to launch the Rs 400 crore fund focused on boosting the festive growth of e-commerce businesses. The startup intends to use these funds to improve the sales of companies across the B2B, e-commerce tech, and D2C sectors. The debt financing firm counts FJ Labs, Presight Capital, and Valar Ventures as its investors.
This financing firm plans to invest this fund to support digital-first brands with marketing, operational, and inventory expenses. The company previously invested Rs 250 crore during the festive season which is 60 percent less than newly deployed funds. The co-founder and CEO of Velocity, Abhiroop Medhekar mentioned that the startup collaborated with various e-commerce platforms to fund brands selling products on these platforms. Velocity provides financial solutions to startups that need financial support for their marketing and production management. The fintech firm offers funds in return for an agreed percentage of revenue. The company has invested in around 150 startups including French Crown, Furlenco, Soulflower, PowerGummies, and more. The platform invested Rs 250 crore in last year’s festive season to enhance the sales of known e-commerce platforms.
The firm was co-founded by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop in 2020. The company is partnered with financial institutions to provide growth capital. This Rs 400 crore funding is expected to increase e-commerce sales by 20 percent compared to last year. The startup provides different financing solutions for businesses depending upon the early, growth, and late stages to meet their CAPEX, marketing, and manufacturing expenses. The platform offers financial products such as vendor payments, financial insights, and more. The company faces competition from other revenue-based financing companies such as GetVantage, A5S, and Moove. The financing platform offers management and financing solutions to help startups and SMEs.
The growth in festive sales is expected to be around 20 percent and this year the e-commerce sector is predicted to cross the 111 billion USD mark. RedSeer reported. Velocity claims to operate on a 48-hour loan disbursal model with a fixed fee between 6 to 10 percent of transaction size. The data intelligence platform, tracxn reported that the startup secured over 30.3 million USD across two funding rounds, including $20 million raised across the series A funding round.
Conclusion:
Velocity is a financing platform that announced its plan to invest Rs 400 crore in small businesses during the Indian festive season this year. The company also invested Rs 250 crore in various e-commerce businesses during the last festive season to help them increase sales. The firm plans to provide Rs 400 crore funds to small enterprises for pre-planning marketing and inventory efforts to achieve profit and boost sales. The company plans to invest this amount in D2C and e-commerce sectors. This company works with companies having a minimum monthly revenue of Rs 40 to Rs 50 lakh. The investment firm has invested in around 150 startups since its inception. The startup competes with other revenue-based financing platforms like GetVantage.
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