Velocity offers revenue-based financing to e-commerce and direct-to-consumer businesses, taking a low standard fee and collecting repayments tied to the partner’s revenue performance. The platform integrates with partners’ digital data and uses over 50 parameters to assess creditworthiness, often crediting funds within five days. Velocity reports 175 customers and roughly 250 investments to date, with 78% of customers returning for additional funding and portfolio brands growing revenues by 1.5x within six months of funding. The startup recently launched Velocity Insights, a free daily WhatsApp report for partners and non-customers, and may introduce paid tiers and expanded metrics in future. Velocity partners with NBFCs to finance loans and says it has grown tenfold in recent months, while aiming to deploy over $134 million to more than 1,000 businesses in the next year. Its long-term plan is to broaden financing products beyond revenue-based deals to address additional gaps in access to capital for new-age businesses. Velocity is a Bengaluru-based fintech that provides collateral-free, revenue-based loans to online businesses, primarily targeting D2C brands and online marketplaces. Founded a year ago by IIT Bombay graduates Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, the company underwrites credit based on merchants' revenue flows and repays via a fixed fee taken from revenues. Velocity offers credit up to Rs 2 crore and typically disburses capital in about a week. More than 300 online businesses have signed up for its revenue-based financing. The company plans to use its new funding to expand its customer base, invest in its products and create additional financial instruments for the market. It has also launched a digital-marketing-focused corporate credit card in partnership with SBM Bank and Visa.

Total raised

$30M

Funding rounds

2

Latest round

Series A

Latest activity

Nov 2021