In order to assist D2C and e-commerce brands in the impending holiday season sales, Velocity, a cash flow-based financing platform, has established a fund of Rs 400 crore ($48 million).
A Rs 250 crore fund was introduced by the Bengaluru-based company for the holiday season last year.
In order to improve their product assortment, expedite delivery times, and take advantage of new trends like premiumization, brands and sellers on well-known e-commerce platforms (like Amazon, Flipkart, Myntra, and Shopify) as well as modern quick commerce platforms (like Blinkit, Instamart, and Zepto) will be assisted by this funding. As per Velocity’s press release, the fund will enable brands to allocate funds towards inventory, marketing, and operational expenses without compromising their equity.
Market research indicates that, in contrast to the 13% growth in e-commerce GMV (gross merchandise value) that occurred last year, e-commerce sales are expected to increase by 20% during the 2024 holiday season.
The biggest e-commerce marketplaces, along with a number of ecosystem enablers, are available at Velocity to meet the impending holiday demand in a variety of industries, including consumer electronics, food and beverage, beauty and personal care, apparel and fashion, home, garden, and kitchen, jewelry and accessories, and healthcare.
Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop co-founded Velocity in 2020 with the goal of democratizing working capital access for a range of industries. The platform uses online cash flows and data from digital-first companies to provide creative financing options. It gives entrepreneurs in e-commerce non-dilutive debt financing.
Almost 1,500 e-commerce brands, including Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower, have reportedly benefited from Velocity’s partnerships with the top NBFCs and regulated organizations in India. It also claims to have enabled over 1,500 businesses, primarily D2C and e-commerce enterprises, with the disbursement of over Rs 900 crores.
With $30 million in equity funding raised, Velocity—which is in competition with GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX—is led by Valar Ventures.
