Cash flow-based financing platform Velocity has announced the launch of Rs 300 crore growth capital for Indian B2B Software-as-a-Service (SaaS) businesses.
For this, it has partnerships with India’s leading NBFC’s and regulated entities.
Velocity’s offering of a fixed term credit product, is designed to provide SaaS businesses with financing proportional to 3 to 6 times the amount of their monthly recurring revenue. According to the company, selected companies will receive growth capital without the need to dilute their equity, thus enabling them to scale operations, accelerate product development, and expand their market reach.
Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, Velocity offers credit which ranges from Rs 50 lakhs to 5 crore for 12 months. The company leverages the businesses’ data and robust online cash flows to offer innovative financial solutions. Its financing suite includes a range of financing products such as fixed-term credit,
Velocity says that it has disbursed loans worth more than Rs 400 crore in 2023. The company also says that it has crossed 2,000 lifetime investments with 500 brands funded last year which include French Crown, Iconic Fashion, Soulflower, Chumbak, IDC Kitchen, Off Duty, Itsy Bitsy, Bear House, and Zlade. Velocity has raised $30 million in funding so far led by Peter Thiel’s Valar Ventures.
