Velocity Launches INR 400 Cr Fund to Empower D2C and E-commerce Brands for Festive Season Growth Velocity's new fund will support brands on major e-commerce and quick commerce platforms by enabling investments in inventory, marketing, and operations, all without diluting equity.
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Velocity, a Bengaluru-based cash flow-based financing platform, has launched an INR 400 crore (USD 48 million) fund aimed at supporting direct-to-consumer (D2C) and e-commerce brands during the upcoming festive season.
This initiative comes on the heels of last year's successful INR 250 crore fund.
The newly launched fund 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, and Zepto) in enhancing their product assortment, accelerating delivery timelines, and capitalising on emerging trends such as premiumization. The fund will allow brands to invest in inventory, marketing, and operational expenses without diluting their equity.
Abhiroop Medhekar, Co-founder and CEO of Velocity, said, "This is an exciting time, as innovation and customer-centric strategies are driving the e-commerce and quick commerce boom. Velocity's debt financing is specifically designed to empower D2C and e-commerce brands to scale their operations, optimise inventory, and implement effective marketing strategies. By providing the financial support they need, we're excited to support the growth journey of several brands as they prepare to capitalise on festive season demand and e-commerce growth."
Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity focuses on democratising access to working capital across various sectors by leveraging digital-first businesses' data and online cash flows.
The platform claims that it has provided financing to over 1,500 e-commerce brands, including notable names like Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower, among others.
Velocity's seamless process was highlighted by Aarti Koya, CEO of EKAM (Aromee Brands), who stated, "Velocity stepped in at the right time, just before the festive season, to provide us with financing for inventory. The entire process was seamless and completed in five days, helping us meet our growth targets."
To date, Velocity has disbursed over INR 900 crore, empowering businesses to overcome working capital challenges. Backed by USD 30 million in equity funding from Peter Thiel's Valar Ventures, Velocity continues to be a vital partner for India's fastest-growing D2C brands.
