Bengaluru-based cash flow-based financing platform Velocity has announced a $48 million (Rs 400 crore) fund to support direct to consumer (D2C) and e-commerce brands in the country.
The allocation represents a 60% increase over the Rs 250 crore fund set aside last year.
Focus on empowering D2C and e-commerce brands
The newly announced fund is designed to empower D2C and e-commerce brands by providing them with the financial support needed to scale operations, optimize inventory, and implement effective marketing strategies.
“We are witnessing a significant shift towards e-commerce, with projections estimating that India will be the third-largest online market in the world, reaching $325 billion and attracting 500 million shoppers by 2030,” said Velocity CEO Abhiroop Medhekar.
Strategic support for holiday season sales
The festive season is a critical period for digital brands as it contributes around 40-50% of their annual sales.
Velocity’s fund will support brands and sellers on major e-commerce platforms such as Amazon, Flipkart, Myntra and Shopify, as well as fast-growing commerce platforms such as Blinkit, Instamart and Zepto.
These platforms are increasingly becoming vital sales channels, generating up to 30% of sales depending on the category.
The fund will enable brands to improve product assortment, accelerate delivery times and capitalize on emerging trends such as premiumization.
Leverage industry partnerships and expertise
In the last four years, Velocity has disbursed over Rs 900 crore, empowering over 1,500 businesses, particularly in the D2C and e-commerce sectors.
The firm has built strong partnerships with leading non-banking financial companies (NBFCs) and regulated entities in India, enabling it to offer innovative financial solutions.
“Velocity’s debt financing is specifically designed to empower e-commerce and D2C brands. By providing them with the financial support they need, we are excited to support the growth journey of several brands as they prepare to capitalize on the festive season demand and e-commerce growth,” Medhekar added.
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.