Velocity, a fintech firm, has raised $20 million from Peter Thiel’s Valar Ventures.
Velocity, a Bengaluru-based intech business, has raised $20 million in a Series A fundraising round headed by Valar Ventures, founded by venture billionaire Peter Thiel.Among those that participated in the round were Presight Capital, Utsav Somani’s iSeed, Maninder Gulati (Oyo), Zac Prince (BlockFi), and Philippe De Mota (Hedosophia).According to the press release, the company plans to invest over Rs 1,000 crore in over 1,000 e-commerce companies.
“Our mission is to pave the way for India’s future business financing.” Since our inception, we’ve been fortunate to work with high-conviction investors like Valar. “By doubling down and leading our Series A, they have reaffirmed their conviction in Velocity,” said Abhiroop Medhekar, Velocity co-founder and CEO.”We’re already India’s largest revenue-based financier, and we’re excited to use this money to construct a slew of world-class products for tens of thousands of new-age companies.”
Velocity, which was founded in 2020, has established revenue-based financing as a viable alternative to venture capital and traditional bank debt for Indian e-commerce companies.
Velocity has raised $30 million in equity capital thus far. In order to rapidly develop its revenue-based financing platform, it has also secured various lending lines from top non-banking financial organisations.
According to Velocity, brands who have previously obtained finance through the company have boosted their revenues by 1.5x within six months of investment, and 78 percent of these brands become return clients.
PowerGummies, Green Soul, WallMantra, BellaVita, Smoor Chocolates, and CrossBeats are among its D2C brands.
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