Fintech startup Velocity has raised $20 million in a Series A round led by Peter Thiel’s Valar Ventures and other investors including Presight Capital, iSeed, Maninder Gulati, Zac Price and Philippe De Mota.
The firm had raised $10 million of seed capital earlier in 2021 which brings its total equity raised to date to $30 million. In addition to this, they have also raised multiple debt capital from NBFCs.
The company is planning to deploy Rs 1000 crores in Indian e-commerce businesses from its newly raised and existing capital.
Launched in early 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity offers revenue-based financing at an interest rate of 4-8% as a replacement of VC funds and traditional bank debt for Indian e-commerce businesses.
The Bengaluru-based company already has over 1500 registered D2C and e-comm brands and has processed over 250 investments across 175 companies from its fundable pool of Rs 1200 crore. The startup has also grown its revenues by 1.5x within 6 months of funding.
Velocity’s portfolio includes D2C brands such as PowerGummies, Green Soul, WallMantra, BellaVita, Smoor Chocolates and CrossBeats to name a few.
