Velocity has successfully raised $30.3 million over two funding rounds, including a $20 million Series A in November 2021. The company focuses on providing financial services tailored for digital-first businesses in India.
Keep reading to explore the intricacies of Velocity's fundraising journey and the investors backing this innovative platform.
What Is Velocity?
Founded in 2020, Velocity is a fintech company based in Bengaluru, India. The company was established by Saurav Swaroop and Abhiroop M, both alumni of prestigious institutions like IIT and IIM.
Velocity focuses on providing financial products tailored for digital-first businesses, including revenue-based financing, credit cards, and payment solutions. Their mission is to empower small business owners with technology to improve their access to financial services.
With a team of 51-200 employees, Velocity is rapidly expanding its market presence and continues to innovate in the fintech space.
How Much Funding Has Velocity Raised?
- Seed Round
- Amount Raised: Not explicitly mentioned
- Date: Earlier in 2021
- Lead Investors: Valar Ventures
- Motivation Behind the Round: Initial funding to support the growth and development of Velocity's revenue-based financing platform.
- Series A Round
- Amount Raised: $20,000,000
- Date: November 2021
- Lead Investors: Valar Ventures, Presight Capital
- Motivation Behind the Round: To expand Velocity's operations, deploy significant capital to e-commerce and direct-to-consumer businesses, and develop additional financing products.
Total Amount Raised: $20,000,000. Current Valuation: Not explicitly mentioned.
Key Investors
- Valar Ventures
- Details: Led by Peter Thiel, Valar Ventures is a venture capital firm that has previously invested in Velocity's seed round. The firm is known for backing 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 that invests in early-stage technology companies. The firm aims to support innovative startups with high growth potential.
- Investment Focus Areas: Technology, fintech, healthcare.
- Notable Investments: Not specified in the article.
- AngelList India head Utsav Somani’s iSeed
- Details: Utsav Somani is the head of AngelList India and runs the iSeed fund. He focuses on supporting early-stage startups in India.
- Investment Focus Areas: Early-stage startups, technology.
- Notable Investments: Not specified in the article.
- Maninder Gulati of Oyo
- Details: Maninder Gulati is associated with Oyo, a large hospitality chain. He brings significant industry experience to his investments.
- Investment Focus Areas: Hospitality, technology.
- Notable Investments: Not specified in the article.
- Zac Prince of BlockFi
- Details: Zac Prince is the CEO of BlockFi, a crypto-financial services company. He is known for his expertise in the cryptocurrency sector.
- Investment Focus Areas: Cryptocurrency, fintech.
- Notable Investments: Not specified in the article.
What's Next for Velocity?
Velocity is poised to seize a significant opportunity in the Indian market by deploying over $134 million to more than 1,000 businesses in the next year. With less than 0.5% of over 75,000 independent e-commerce stores in India being equity funded, the potential for growth is immense. The company plans to expand its offerings beyond revenue-based financing, introducing new products and a paid service for non-customers using Velocity Insights.
As Velocity scales, future fundraising rounds are likely, attracting more investors interested in its innovative financing solutions. However, the company must navigate challenges such as managing risks associated with revenue-based financing and maintaining portfolio quality amidst rapid growth. Competition from other financing platforms and traditional lenders will also be a hurdle to overcome.
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