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Velocity, India’s cash flow-based financing platform, rolls out Rs 400 crore to support the financing needs of D2C and eommerce brands in the upcoming festive season sales. This year’s allocation is over 60 per cent more than the Rs 250 crores earmarked by Velocity in 2023, highlighting the industry’s expectations of a bigger festive season in 2024, as mentioned in the press release.
The company said that this financing will support brands and sellers on major e-commerce platforms (such as Amazon, Flipkart, Myntra, and Shopify) and new-age quick commerce platforms (like Blinkit, Instamart, Zepto) in enhancing their product assortment, accelerating delivery timelines, and capitalising on emerging trends such as premiumization.
Commenting on this announcement, Abhiroop Medhekar, Co-Founder and CEO of Velocity said, “As more Indian consumers turn to online shopping for its convenience and personalized experiences, we are witnessing a significant shift towards e-commerce with projections estimating that India will be the world's third-largest online market reaching USD 325 billion and attracting 500 million shoppers by 2030. This is an exciting time, as innovation and customer-centric strategies are driving the e-commerce and quick commerce boom. Velocity's debt financing is specifically designed to empower D2C and E-commerce brands to scale their operations, optimize inventory, and implement effective marketing strategies.”
As per a press release, several brands have already raised funds from Velocity to help bolster their growth in the 2024 festive season. Owing to the huge surge in demand during the festive season, one of the biggest problems faced especially by e-commerce sellers is stocking out due to lack of inventory. With the financing support, these brands will now have enough funds to adequately stock their inventory to meet the festive demand.
Aarti Koya, CEO of EKAM (Aromee Brands) said, "Velocity stepped in at the right time for us just before the festive season to provide us financing for inventory. Looking forward to working with Velocity for all our future inventory funding requirements.”
The press release stated that Velocity is actively working with the largest e-commerce marketplaces and several ecosystem enablers to support the upcoming festive demand across sectors such as beauty and personal care, Apparel/ fashion, consumer electronics, food and beverages, home, garden and kitchen, jewellery and accessories, healthcare and other e-commerce categories.
