The launch of growth capital worth Rs 300 crore has been announced by cash flow-based financing platform Velocity for Indian B2B Software-as-a-Service (SaaS) enterprises.
It has agreements with the top NBFCs and regulated organizations in India for this.
The fixed-term credit product that Velocity offers is intended to give SaaS companies funding that is three to six times the amount of their recurring monthly revenue. The company claims that a limited number of businesses will be given growth capital without having to dilute their equity, allowing them to grow their operations, speed up the development of new products, and reach a wider market.
Velocity, which Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop co-founded in 2020, provides credit with 12-month terms ranging from Rs 50 lakhs to Rs 5 crore. The company provides creative financial solutions by utilizing the robust online cash flows and data of the businesses. A variety of financing options are available in its financing suite, including fixed-term credit.
According to Velocity, it disbursed loans in 2023 totaling more than Rs 400 crore. Additionally, the company reports that it funded 500 brands last year, including French Crown, Iconic Fashion, Soulflower, Chumbak, IDC Kitchen, Off Duty, Itsy Bitsy, Bear House, and Zlade, surpassing 2,000 lifetime investments. Peter Thiel’s Valar Ventures has led $30 million in funding raised for Velocity thus far.
