Bengaluru-based fintech firm Velocity announces Rs 400 crore fund

Bengaluru-based cash flow-based financing platform Velocity has announced a $48 million (Rs 400 crore) fund to support direct-to-consumer (D2C) and ecommerce brands in the country. 

The allocation marks a 60% increase from the Rs 250 crore fund set aside last year.

Focus on empowering D2C and e-commerce brands

The newly announced fund is designed to empower D2C and e-commerce brands by providing the necessary financial support to scale operations, optimize inventory, and implement effective marketing strategies.

"We are witnessing a significant shift towards e-commerce, with projections estimating that India will be the world’s third-largest online market, reaching $325 billion and attracting 500 million shoppers by 2030," said Velocity's CEO, Abhiroop Medhekar.

Strategic support for festive season sales

The festive season is a critical period for digital-first brands, contributing to about 40-50% of their annual sales.

Velocity's fund will support brands and sellers on major e-commerce platforms such as Amazon, Flipkart, Myntra, and Shopify, as well as quick commerce platforms like Blinkit, Instamart, and Zepto.

These platforms are increasingly becoming vital sales channels, driving up to 30% of sales depending on the category.

The fund will allow brands to enhance product assortments, speed up delivery timelines, and capitalize on emerging trends such as premiumization.

Leveraging partnerships and industry expertise

Over the past four years, Velocity has disbursed over Rs 900 crore, empowering more than 1,500 businesses, particularly in the D2C and e-commerce sectors.

The firm has built strong partnerships with India's leading Non-Banking Financial Companies (NBFCs) and regulated entities, enabling it to offer innovative financing solutions. 

"Velocity’s debt financing is specifically designed to empower D2C and e-commerce brands. By providing the financial support they need, we’re excited to support the growth journey of several brands as they prepare to capitalize on the festive season demand and e-commerce growth," Medhekar added.