Velocity is an India-based financial services company developing financial technology for e-commerce and direct-to-consumer (D2C) businesses. It was founded in 2020 and has raised more than $30,000,000 in funding over the course of three funding rounds. Investors have included Valar Ventures, Presight Capital, and angel investor Zac Prince.Its focus is on offering revenue-based financing for companies, which is an alternative to venture capital and bank debt.
The company provides financing for D2C businesses in India. Entrepreneurs and business owners can receive up to $500,000 in financing by filling out an online form with information such as revenue and cost details for the business. Marketing and sales data are also needed to receive financing. There are more than fifty parameters that are considered for the loan, and the business will learn if it is approved within five days. Once approved, the business can pay back the financing by having a portion of its revenues collected by Velocity until the financing and a small fee are repaid. The Velocity platform can be integrated with a client's existing software and platforms, including Facebook and Shopify.
Velocity has developed other financial products for its clients. One product is Velocity Insights, which is live for beta users. It is a platform that offers automated performance reports for direct to consumer brands. Clients can connect their sales and marketing accounts to receive information about their business metrics. This information is delivered daily to the client's Whatsapp account. The platform provides information regarding topics such as the performance of marketing campaigns on social media and the efficiency of offering discounts to procure more customers.
The company has also developed a corporate card for its clients, which is powered by VISA. It is a prepaid card that gives clients 1% cashback on all transactions. It is intended to cover business purchases such as marketing spends, software-as-a-service subscriptions, and travel expenses. When clients order the card, it comes in both virtual form and as a physical card. There is also a dashboard available to show clients their spending and their cashback amount.
Velocity raises $10.3 mn to build financing products for future businesses in India
March 24, 2021
Velocity, a revenue-based financing platform in India, raises $20 million led by Peter Thiel's Valar Ventures - TechCrunch
November 16, 2021
Working Capital Solutions: Leveraging Revenue-Based Financing for D2C Growth | Ft. velocity
November 10, 2021