Velocity
Overview
Velocity, founded in 2020 by the trio Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, is a prominent fintech company headquartered in Bengaluru, India. Specializing in revenue-based financing, the company caters to online businesses, providing flexible financial solutions without the need for collateral. It has successfully raised $30 million in funding, primarily from Valar Ventures, led by Peter Thiel. With over 278 employees, Velocity is pivotal in supporting the financial growth of over 4,000 brands.
Recent Developments
- December 2024: Velocity earmarked INR 200 crore to support the growth of restaurant and cloud kitchen brands across India. This strategic move aims to overcome traditional financing challenges in the F&B sector.
- October 2024: Introduced a Rs 300 crore growth capital fund to support Indian B2B SaaS companies, tailored to provide financing proportional to their monthly recurring revenue.
- September 2023: Velocity laid off 14% of its workforce as part of restructuring efforts to achieve profitability.
- 2023: Successfully doubled its disbursements to the e-commerce sector to INR 800 crore and expanded its portfolio to cloud kitchens and SaaS companies.
- January 2023: Expanded its financing options to offer overdrafts and fixed-term credit products, thereby diversifying its product suite.
- Covered extensively in media for its innovative financial solutions and strategic expansions in the fintech sector.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2020 |
| Headquarters | Bengaluru, India |
| Founders | Abhiroop Medhekar, Atul Khichariya, Saurav Swaroop |
| Revenue | $1.41M as of March 31, 2023 |
| Key Investors | Valar Ventures, FJ Labs, Presight Capital |
| Industry | Financial Services |
| Number of Employees | 278 |
Early History
Velocity was founded in January 2020, amid an increasing demand for non-traditional financing solutions tailored to digital-first businesses. The founders, leveraging their backgrounds in strategic investments, consulting, and technology, identified a gap in the market for fast, collateral-free funding options. They focused on creating financial products compatible with modern business operations, emphasizing flexibility and speed in lending processes. This vision led Velocity to pioneer revenue-based financing in India, tapping into the growing ecosystem of e-commerce and D2C brands.
Company Profile and Achievements
Velocity's business model revolves around offering cash-flow based financing products that include revenue-based financing, fixed-term credit, and overdrafts tailored for digital-first businesses. The company empowers businesses by evaluating their financial health through advanced analytics and digital integrations. This innovative approach has allowed Velocity to fund over 4,000 brands and disburse more than INR 1,000 crore. Major achievements include substantial growth in clientele within D2C sectors like fashion and food technology, partnerships with 26 ecosystem players, and collaborations with major online marketplaces.
Current Operations and Market Position
Velocity is currently at the forefront of the fintech industry in India, known for providing quick and flexible capital solutions to small and medium-sized enterprises. It focuses on digital-native sectors where traditional collateral-based loans are less practical. By leveraging data analytics, Velocity ensures a comprehensive understanding of its clients' cash flows and financial cycles, aligning repayments with business performance. This adaptability has enabled it to maintain a low non-performing asset (NPA) rate of under 1.5%, positioning it strategically in the competitive fintech landscape.
Velocity Company Bangalore
Located in the tech-hub of Bengaluru, Velocity leverages its strategic position to collaborate with India’s fast-growing digital economy. The Bengaluru office functions as the central hub for its operational and strategic activities, managing client relationships, tech development, and business expansions within the region. The city’s rich talent pool and dynamic business environment provide a significant advantage for Velocity in implementing innovative financial solutions and expanding its outreach effectively.
Velocity Company Products
Velocity’s product suite is adaptive to varying business needs, including:
- Revenue-Based Financing: Tailored for businesses with fluctuating revenues, repayments aligned with monthly sales.
- Fixed Term Credit: Offers predictable repayment plans, ideal for sectors like B2B SaaS with consistent revenue streams.
- Overdrafts: Provides flexibility to draw funds as needed, offering liquidity management for scalable operations.
Conclusion
Velocity stands out as a disruptive force in the fintech sector, effectively bridging the financing gap for modern, asset-light businesses in India. With continuous product innovation and commitment to understanding client needs, Velocity is well-positioned to expand its influence and cater to emerging digital economies. As it navigates future challenges, the company's strategic investments and innovative financial solutions pave the way for continued growth and influence in the fintech space.