Velocity Allocates Rs 400 Crore for Festive Season

Velocity, a cash flow-based financing platform, has announced a ₹400 crore ($48 million) fund to support direct-to-consumer (D2C) and e-commerce brands ahead of the 2024 festive season, marking a 60% increase from the ₹250 crore fund provided in 2023. This financing aims to help brands enhance inventory, marketing, and operational capabilities, as festive sales typically account for 40-50% of annual sales for digital-first companies. Projections indicate a 20% growth in e-commerce sales during the festive season, compared to 13% last year. Velocity's support will extend to major e-commerce platforms like Amazon and Flipkart, as well as quick commerce platforms such as Blinkit and Zepto. The company has financed over ₹900 crore across 1,500 brands since its inception in 2020, leveraging partnerships with leading NBFCs to provide non-dilutive debt solutions. Founded by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity is poised to significantly impact the upcoming festive shopping surge.