"Velocity, a homegrown financing platform, announced a fresh Rs 400 crore fund on Monday to support direct-to-consumer and e-commerce brands ahead of the festive season, significantly up from the Rs 250 crore deployed last year, thus marking a 60 percent increase.".
Abhiroop Medhekar, founder and CEO of Velocity, stressed the fact that e-commerce is growing in leaps and bounds: by 2030, India will be the third-largest online market in the world, reaching $325 billion, attracting 500 million shoppers. Velocity's debt financing solutions are specially tailored to give D2C and e-commerce brands the ability to scale up operations, refine inventory management, and put together robust marketing campaigns.
For any digital-first brand, 40-50 percent of sales come during the festive season, a time when the stakes are quite high. With Velocity's financing, brands/sellers stand accommodated across large ecommerce platforms and other quick commerce services like Blinkit, Instamart, Zepto, etc. Quick commerce has become a very important channel, with up to 15-30% of sales depending on the category.
According to a RedSeer report, this festive season is going to see the e-commerce GC jump 20 percent over the 13 percent growth in GMV seen last year.
The last 4 years have seen Velocity power mostly e-commerce brands with a consumer base of more than 1,500 brands across the country in partnership with leading NBFCs and other regulated entities. Most of them have already raised funding from Velocity prior to this festive season for growth.
It has teamed up with leading e-commerce marketplaces and other ecosystem enablers to serve the expected festive demand across categories.
Incorporated in 2020, Medhekar founded the platform along with Atul Khichariya and Saurav Swaroop. The platform has disbursed over Rs 900 crore to more than 1,500 businesses into D2C and e-commerce segments across India. The Bengaluru-based fintech company also raised $30 million in equity funding from Valar Ventures led by Peter Thiel.
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