Indian FinTech startup Velocity has secured $20 million funding in a Series A round led by US-based VC firm, Valar Ventures.
The funding round also saw participation from other investors including Utsav Somani’s iSeed, Presight Capital, Zac Prince (BlockFi), Maninder Gulati (OYO), and Philipe De Mota (Hedosophia).
Velocity’s total equity raised stands at $30 million including $10 million seed round early this year. Besides that, the startup has also secured multiple debt lines with leading NBFCs to quickly scale its revenue-based platform.
Abhiroop Medhekar, co-founder and CEO of Velocity said, “Our vision is to build the future of business financing in India. We are glad to partner with high-conviction investors like Valar since our early days. They have re-affirmed their belief in Velocity by doubling down and leading our Series A.”
He added, “We are already India’s largest revenue-based financier and keen to use this funding to build multiple world-class products for thousands of new-age businesses.”
According to McCormack of Valar Ventures, “Since our last investment, Velocity has grown 10x and secured the lead position in the fast-growing market. Despite this exponential growth, their portfolio quality remains strong. We were impressed by their strong customer orientation, tech-product DNA, and ambitious growth plans.”
The Bengaluru-based startup was launched in 2020 by Abhiroop Medhekar, Saurav Swaroop, and Atul Khichariya. Velocity offers revenue-based financing to online businesses as an alternative to traditional bank debt for ecommerce businesses and venture capital in India.
The startup can tell how the business is doing by integrating its platform with the partner firm’s digital data. Velocity uses more than 50 parameters to assess whether it can offer a loan to a business, and processes the amount within five days.
Velocity works with more than 1500 D2C and ecommerce businesses. Many of fastest-growing D2C brands in India such as Green Soul, PowerGummies, BellaVita, WallMantra, CrossBeats, Smoor Chocolates are part of Velocity’s portfolio.
The FinTech startup has already processed more than 250 investments across 175 companies and has more than $160 million (Rs1200 crores) of fundable revenues connected to this platform.
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