Velocity launches Rs 400 Cr festive season fund for D2C brands

Cash flow-based financing platform Velocity has launched a fund of Rs 400 crore ($48 million) to support D2C and e-commerce brands in the upcoming festive season sales.

The Bengaluru-based firm had launched a Rs 250 crore fund for the festive season last year.

This financing will support brands and sellers on major e-commerce platforms (such as Amazon, Flipkart, Myntra and Shopify) and new-age quick commerce platforms (like Blinkit, Instamart, Zepto) in enhancing their product assortment, accelerating delivery timelines, and capitalize on emerging trends such as premiumization. The fund will allow brands to invest in inventory, marketing, and operational expenses without diluting their equity, Velocity said in a press release.

According to market research, e-commerce sales are projected to see 20% growth in the 2024 festive season as compared to 13% growth in e-commerce GMV (gross merchandise value) last year.

Velocity is indulged  with the largest ecommerce marketplaces and several ecosystem enablers to support the upcoming festive demand across sectors such as beauty and personal care, apparel/ fashion, consumer electronics, food and beverages, home, garden and kitchen, jewelry and accessories, healthcare and other e-commerce categories.

Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity focuses on democratizing access to working capital for the various  sectors. The platform leverages digital-first businesses’ data and online cash flows to offer innovative financing solutions. It provides non-dilutive debt financing to e-commerce founders.

Velocity says that it has leveraged its partnerships with India’s leading NBFCs and regulated entities to empower over 1,500 e-commerce brands like Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower among others. It also says that it has disbursed over Rs900 crores, enabling over 1,500 businesses, especially D2C and e-commerce companies. 

Velocity has raised $30 million in equity funding led by Valar Ventures and competes with the other players in this space like GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX.