Bengaluru, Aug 26 (IANS) Homegrown financing platform Velocity on Monday announced a Rs 400 crore fund to support direct-to-consumer (D2C) and e-commerce brands, as the country gears up for the festive season.
The cash flow-based financing platform last year earmarked Rs 250 crore for D2C brands — a 60 per cent increase this year.
“We are witnessing a significant shift towards e-commerce, with projections estimating that India will be the world’s third-largest online market reaching $325 billion and attracting 500 million shoppers by 2030,” said Abhiroop Medhekar, Co-founder and CEO of Velocity.
Velocity’s debt financing is designed to empower D2C and e-commerce brands to scale their operations, optimise inventory, and implement effective marketing strategies, he noted.
Festive season sales are a crucial period for digital-first brands, accounting for about 40-50 per cent of their annual sales.
The financing will support brands and sellers on major e-commerce platforms and new-age quick commerce platforms like Blinkit, Instamart and Zepto.
Quick commerce has emerged as an important sales channel for brands, driving 15-30 per cent of sales depending on category.
According to a RedSeer report, e-commerce sales are projected to see 20 per cent growth in the 2024 festive season, as compared to 13 per cent growth in e-commerce GMV (gross merchandise value) last year.
Over the last four years, Velocity has leveraged its partnerships with India’s leading NBFCs and regulated entities to empower over 1,500 e-commerce brands. Several brands have already raised funds from Velocity to help bolster their growth in the 2024 festive season.
Velocity said it is actively working with the largest e-commerce marketplaces and several ecosystem enablers to support the upcoming festive demand across sectors.
Founded in 2020 by Medhekar, Atul Khichariya and Saurav Swaroop, Velocity has so far disbursed over Rs 900 crore, enabling over 1,500 businesses, especially D2C and e-commerce companies.
The Bengaluru-based fintech has raised $30 million in equity funding, led by Peter Thiel’s Valar Ventures.
–IANS
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