Velocity, a leading cash flow-based financing platform, has introduced a ₹400 crore fund aimed at supporting the growing financing needs of Direct-to-Consumer (D2C) and e-commerce brands across India.
This is a significant increase—60% more than the ₹250 crore allocated by the company in 2023.
Why This Matters
The D2C and e-commerce sectors in India are experiencing rapid growth, driven by increasing online consumer demand.
This fresh infusion of capital from Velocity is designed to help brands invest in critical areas like:
- Inventory management
- Marketing campaigns
- Operational costs
Unlike equity financing, Velocity offers debt financing, which means brands can access funds without diluting ownership.
This type of financing is particularly useful for managing seasonal sales peaks, like those expected during the upcoming festive season.
The Growing Shift Toward E-Commerce
“As more Indian consumers turn to online shopping for its convenience and personalized experiences, we are witnessing a significant shift towards e-commerce.
India is projected to become the world’s third-largest online market, reaching $325 billion and attracting 500 million shoppers by 2030,” said Abhiroop Medhekar, Co-Founder & CEO of Velocity.
Velocity’s initiative is timed perfectly as e-commerce in India is on a fast upward trajectory.
According to a report by RedSeer, e-commerce sales are expected to grow by 20% during the 2024 festive season, an increase from the 13% seen last year.
This offers a prime opportunity for D2C and e-commerce brands to scale up.
Supporting Emerging Trends
Velocity’s financing aims to not only support immediate sales growth but also help brands:
- Enhance their product range
- Speed up delivery times
- Tap into emerging trends like premiumization and mobile-friendly shopping experiences.
According to recent data, over 73% of festive sales last year occurred on mobile devices, yet many brands still lack optimized mobile websites.
This presents a massive opportunity for those who can deliver seamless, mobile-friendly shopping experiences.
Why the Festive Fund?
With over 2 out of 5 consumers planning to shop online from D2C merchants this season, and 70% of D2C brands expecting a 2-4x increase in sales, the demand is high.
But, there’s still a gap in providing the convenience, comfort, and overall experience consumers expect.
The true winners of this festive season won’t just be those offering big discounts.
Brands that focus on delivering smooth, personalized experiences, particularly through mobile channels, stand to gain the most.
Velocity’s Track Record
Since its founding in 2020, Velocity has empowered over 1,500 e-commerce brands by providing non-dilutive debt financing.
The platform has disbursed over ₹900 crore in loans and raised $30 million in equity funding.
By partnering with leading NBFCs and regulated entities, Velocity has established itself as a key financier of digital-first and D2C brands in India.
With this ₹400 crore fund, Velocity continues to strengthen its role in helping Indian e-commerce brands thrive, particularly during critical periods like the festive season.
