Velocity to Invest INR 100 Cr in AI-driven Logistics Business The investment will be directed towards strategic hiring, product development and AI-led innovation across the logistics value chain.

Velocity, an e-commerce enablement platform, has earmarked INR 100 crore to scale its AI-led shipping business, Velocity Shipping (formerly Shipfast).

The investment will be deployed over the next two years and will be funded entirely through internal cash reserves and revenues from the company's core businesses.

Velocity Shipping was recently rebranded as the company increased its focus on building faster, more reliable and transparent logistics solutions for digital-first brands. The shipping vertical has emerged as a key contributor to the company, accounting for nearly 40% of Velocity's total revenue.

Launched in 2025, Velocity Shipping has onboarded more than 900 brands to date, with around 60% coming from Velocity's existing ecosystem. The platform is currently witnessing nearly 70% month-on-month growth in order volumes. In December 2025 alone, it claims to have processed over 10 lakh orders, positioning Velocity among India's top three shipping aggregators by order volume.

The INR 100 crore investment will be directed towards strategic hiring, product development and AI-led innovation across the logistics value chain. Velocity plans to double the size of its shipping team and has already made senior hires from firms such as NimbusPost, Pickrr, Delhivery and Shiprocket to strengthen its shipping and last-mile capabilities.

The company is also targeting a five-fold increase in monthly shipping volumes in calendar year 2026.

"We started Velocity by solving one of the biggest bottlenecks for digital-first brands: access to capital," said Abhiroop Medhekar, co-founder and chief executive officer, Velocity. "As we worked closely with thousands of founders, it became clear that logistics and fulfilment were equally critical constraints to growth, but existing solutions needed to evolve to better support digital-first businesses."

Medhekar said Velocity Shipping was designed as an operator-first alternative to existing shipping solutions. "Its rapid adoption has reinforced our belief in shipping as a major growth engine for Velocity. This INR 100 crore commitment reflects our long-term conviction to double down on shipping as we build digital infrastructure for India's e-commerce ecosystem," he added.

Velocity Shipping works with multiple third-party logistics partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, enabling brands to access courier networks across regions through a single interface. The platform currently serves more than 19,000 pincodes across India.

Founded in 2020 by IIT Bombay alumni Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, Velocity offers non-dilutive capital, logistics, business intelligence and AI-led tools to digital-first brands. Backed by Valar Ventures, the company has raised over USD 30 million and has disbursed more than INR 1,100 crore to over 4,000 brands.