Velocity's Festive Fund: Fueling E-commerce Growth in India
August 29, 2024, 4:14 am
Location: India, Telangana, Hyderabad
Employees: 10001+
Founded date: 1994
Total raised: $250.37M
In the bustling world of e-commerce, timing is everything. As the festive season approaches, brands are gearing up for a sales surge. Enter Velocity, a Bengaluru-based cash flow financing platform, with a game-changing announcement. They’ve launched a hefty Rs. 400 crore fund, aimed squarely at empowering direct-to-consumer (D2C) and e-commerce brands. This is not just a financial boost; it’s a lifeline for many.
The festive season is a goldmine for online retailers. It’s a time when sales can soar, often accounting for 40 to 50 percent of annual revenue. For D2C brands, this period is crucial. They need to stock up, ramp up marketing, and enhance operations. However, many face a common hurdle: access to funding. This is where Velocity steps in, offering a solution that doesn’t require brands to dilute their equity.
The new fund is a significant leap from last year’s Rs. 250 crore allocation. This 60 percent increase signals a robust confidence in the e-commerce landscape. The festive season of 2024 is expected to be bigger than ever, and Velocity is positioning itself as a key player in this arena.
Brands on major platforms like Amazon, Flipkart, Myntra, and Shopify will benefit immensely. They can expand their product offerings and improve delivery times. The rise of quick commerce platforms like Blinkit, Instamart, and Zepto adds another layer of opportunity. Rapid commerce is becoming a vital sales channel, contributing 15 to 30 percent of revenues for many brands. Velocity’s funding will enable these companies to seize this moment.
But what does this funding mean in practical terms? It allows brands to invest in inventory, marketing, and operational expenses. This is crucial during peak seasons when demand spikes. With access to alternative debt capital, brands can allocate resources more effectively. They can focus on marketing strategies that resonate with consumers, ensuring they capture the festive spirit.
Velocity’s approach is refreshing. They leverage data and online cash flows to democratize access to working capital. This means that even smaller brands can tap into the financial support they need to thrive. The platform has already financed over 1,500 e-commerce brands, showcasing its commitment to fostering growth in the sector.
The founders of Velocity—Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop—recognized a gap in the market. They understood that many digital-first businesses struggle with cash flow, especially during critical sales periods. By focusing on cash flow-based financing, they’ve created a model that aligns with the needs of modern businesses.
The testimonials from brands that have utilized Velocity’s services speak volumes. One CEO highlighted how the platform provided financing just in time for the festive season, enabling them to meet growth targets. The process was swift and seamless, a crucial factor when time is of the essence.
Velocity’s backing by prominent investors, including Peter Thiel’s Valar Ventures, adds credibility to its mission. With over Rs. 900 crore disbursed to date, the platform is proving to be a vital partner for India’s burgeoning D2C brands. This funding initiative is not just about numbers; it’s about empowering businesses to navigate the complexities of the e-commerce landscape.
As the festive season draws near, the stakes are high. Brands must be agile, innovative, and ready to adapt. Velocity’s fund provides the necessary fuel for this journey. It allows brands to not only survive but thrive in a competitive market.
In a world where consumer preferences shift rapidly, staying ahead is paramount. The ability to invest in inventory and marketing without sacrificing equity is a game-changer. It allows brands to maintain control while scaling operations. This balance is essential for long-term success.
The festive season is a time of celebration, but it’s also a time of intense competition. Brands must differentiate themselves to capture consumer attention. With Velocity’s support, they can focus on what matters most—delivering exceptional products and experiences.
In conclusion, Velocity’s Rs. 400 crore fund is more than just a financial initiative. It’s a strategic move that empowers D2C and e-commerce brands to seize the festive season. By providing access to crucial funding, Velocity is helping to shape the future of online retail in India. As brands prepare for the holiday rush, they can do so with confidence, knowing they have a strong partner in Velocity. The stage is set for a festive season like no other, and with the right support, brands are ready to shine.
The festive season is a goldmine for online retailers. It’s a time when sales can soar, often accounting for 40 to 50 percent of annual revenue. For D2C brands, this period is crucial. They need to stock up, ramp up marketing, and enhance operations. However, many face a common hurdle: access to funding. This is where Velocity steps in, offering a solution that doesn’t require brands to dilute their equity.
The new fund is a significant leap from last year’s Rs. 250 crore allocation. This 60 percent increase signals a robust confidence in the e-commerce landscape. The festive season of 2024 is expected to be bigger than ever, and Velocity is positioning itself as a key player in this arena.
Brands on major platforms like Amazon, Flipkart, Myntra, and Shopify will benefit immensely. They can expand their product offerings and improve delivery times. The rise of quick commerce platforms like Blinkit, Instamart, and Zepto adds another layer of opportunity. Rapid commerce is becoming a vital sales channel, contributing 15 to 30 percent of revenues for many brands. Velocity’s funding will enable these companies to seize this moment.
But what does this funding mean in practical terms? It allows brands to invest in inventory, marketing, and operational expenses. This is crucial during peak seasons when demand spikes. With access to alternative debt capital, brands can allocate resources more effectively. They can focus on marketing strategies that resonate with consumers, ensuring they capture the festive spirit.
Velocity’s approach is refreshing. They leverage data and online cash flows to democratize access to working capital. This means that even smaller brands can tap into the financial support they need to thrive. The platform has already financed over 1,500 e-commerce brands, showcasing its commitment to fostering growth in the sector.
The founders of Velocity—Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop—recognized a gap in the market. They understood that many digital-first businesses struggle with cash flow, especially during critical sales periods. By focusing on cash flow-based financing, they’ve created a model that aligns with the needs of modern businesses.
The testimonials from brands that have utilized Velocity’s services speak volumes. One CEO highlighted how the platform provided financing just in time for the festive season, enabling them to meet growth targets. The process was swift and seamless, a crucial factor when time is of the essence.
Velocity’s backing by prominent investors, including Peter Thiel’s Valar Ventures, adds credibility to its mission. With over Rs. 900 crore disbursed to date, the platform is proving to be a vital partner for India’s burgeoning D2C brands. This funding initiative is not just about numbers; it’s about empowering businesses to navigate the complexities of the e-commerce landscape.
As the festive season draws near, the stakes are high. Brands must be agile, innovative, and ready to adapt. Velocity’s fund provides the necessary fuel for this journey. It allows brands to not only survive but thrive in a competitive market.
In a world where consumer preferences shift rapidly, staying ahead is paramount. The ability to invest in inventory and marketing without sacrificing equity is a game-changer. It allows brands to maintain control while scaling operations. This balance is essential for long-term success.
The festive season is a time of celebration, but it’s also a time of intense competition. Brands must differentiate themselves to capture consumer attention. With Velocity’s support, they can focus on what matters most—delivering exceptional products and experiences.
In conclusion, Velocity’s Rs. 400 crore fund is more than just a financial initiative. It’s a strategic move that empowers D2C and e-commerce brands to seize the festive season. By providing access to crucial funding, Velocity is helping to shape the future of online retail in India. As brands prepare for the holiday rush, they can do so with confidence, knowing they have a strong partner in Velocity. The stage is set for a festive season like no other, and with the right support, brands are ready to shine.