How Much Did Velocity Raise? Funding & Key Investors

Velocity has successfully raised significant capital through various funding rounds, including a $10.3 million seed funding led by Valar Ventures. The platform offers a range of financial products such as revenue-based financing, credit cards, and payment solutions.

Keep reading to explore the intricacies of Velocity's fundraising journey and the investors backing this innovative platform.

What Is Velocity?

Velocity, founded in May 2020, is based in Bengaluru, Karnataka, India. The company was established by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop.

Velocity provides financial solutions tailored for digitally native businesses, including revenue-based financing, credit cards, and payment solutions. Their mission is to empower the growth of eCommerce brands in India.

With a team of 101-250 employees, Velocity has quickly become a leading financial solution provider for new-age businesses in India.

How Much Funding Has Velocity Raised?

1. Seed Round
   • Amount Raised: $10.3M
   • Date: March 2021
   • Lead Investors: Valar Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support initial growth and development of the revenue-based financing platform.
2. Seed Round
   • Amount Raised: Not publicly disclosed
   • Date: February 2020
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To establish the company and begin operations.
3. Series A
   • Amount Raised: $20M
   • Date: November 2021
   • Lead Investors: Valar Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To build multiple world-class products for thousands of new-age businesses and to deploy over $134 million to more than 1,000 businesses in the next year.

Total Amount Raised: $30.3M. Current Valuation: Not publicly disclosed.

Key Investors

• Valar Ventures
  • Details: Valar Ventures is a venture capital firm co-founded by Peter Thiel. They focus on investing in transformative technology companies.
  • Investment Focus Areas: Fintech, technology startups.
  • Notable Investments: TransferWise, N26, Xero.
• Presight Capital
  • Details: Presight Capital is a global venture capital firm. They invest in technology-driven companies across various sectors.
  • Investment Focus Areas: Technology, healthcare, consumer sectors.
  • Notable Investments: Not publicly disclosed.
• iSeed (Utsav Somani)
  • Details: iSeed is a micro VC fund led by Utsav Somani. The fund focuses on early-stage startups in India.
  • Investment Focus Areas: Early-stage startups in India.
  • Notable Investments: Not publicly disclosed.
• Maninder Gulati (Oyo)
  • Details: Maninder Gulati is the Chief Strategy Officer at Oyo. He has been involved in various strategic investments and growth initiatives.
  • Investment Focus Areas: Not publicly disclosed.
  • Notable Investments: Not publicly disclosed.
• Zac Prince (BlockFi)
  • Details: Zac Prince is the CEO of BlockFi, a crypto-financial services company. He has a background in fintech and cryptocurrency.
  • Investment Focus Areas: Cryptocurrency, fintech.
  • Notable Investments: Not publicly disclosed.

What's Next for Velocity?

Velocity is poised to capitalize on the burgeoning e-commerce and direct-to-consumer sectors in India. With plans to deploy over $134 million to more than 1,000 businesses in the next year, the company is set to expand its product offerings and introduce a paid service for non-customers through Velocity Insights. This growth trajectory aligns with the increasing demand for alternative financing options and the reliance on digital data for financial assessments.

Future fundraising opportunities seem likely as Velocity continues to scale, potentially securing additional equity rounds and debt lines to support its ambitious goals. However, challenges such as managing portfolio quality and competing with traditional lenders could pose hurdles. Ensuring the effectiveness of their analytics tools and maintaining strong partnerships will be crucial for sustained growth.

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