Velocity raises $10.3 Million in Seed round led by Valar Ventures backed by Peter Thiel
Bengaluru based fintech startup Velocity has raised $10.3 million in seed funding led by Valar Ventures, a US-based VC firm backed by Peter Thiel. The round also saw participation from MatoPeric and Tom Stafford (DST Global) along with Presight Capital, UtsavSomani’siSeed, Oliver Jung (LAO Holdings), Robert Frohwein (Kabbage), Dhruv Arora (Syfe), and Erik Podzuweit& Florian Prucker (Scalable Capital).
Founded in 2020 by IIT Mumbai alumni Abhiroop Medhekar, AtulKhichariya, and Saurav Swaroop, Velocity provides revenue based financing to online businesses. The founding trio strongly felt the need for a fast, flexible, and non-dilute mode of financing. Thus, they founded Velocity, which allows new-age businesses to raise capital in the easiest and fastest way.
The funds raised in the latest round will be used by Velocity to broaden its customer base and for further investment into creating financial instruments for the market.
The startup has also announced the launch of its digital marketing-focused corporate credit card in partnership with SBM Bank and Visa. The founders of velocity believe that the credit requirements of pure-play online businesses, which are generally used for working capital and digital marketing, are still not met by banks or capitalists.
Velocity provides credit for online businesses based on the revenue flow of the companies. The repayment of the credit to Velocity is taken from the revenues generated by these online businesses with a certain fixed fee.
“We have the capability to understand the various data points of online businesses and extract the relevant financial information to feed into our credit model to provide the money,” says, AbhiroopMedhekar, Co-founder and CEO, Velocity. Using the personal credit card for paying off their digital marketing expenses leads to certain imbalances says Abhirrop.
Currently, the target segment of the startup is direct-to-consumer (D2C) businesses and online marketplaces. It takes a week time to provide a credit of up to 2 crores.
According to Velocity, over 300 online businesses have signed up for its revenue-based financing option.
“As one of the fastest-growing economies in the world, India’s digital ecosystem is at an inflection point. We have been impressed with Velocity’s strong customer orientation and aggressive plans to build innovative financing solutions,” says, James Fitzgerald, Founding Partner, Valar Ventures.
Founded in 2020 by IIT Mumbai alumni Abhiroop Medhekar, AtulKhichariya, and Saurav Swaroop, Velocity provides revenue based financing to online businesses. The founding trio strongly felt the need for a fast, flexible, and non-dilute mode of financing. Thus, they founded Velocity, which allows new-age businesses to raise capital in the easiest and fastest way.
The funds raised in the latest round will be used by Velocity to broaden its customer base and for further investment into creating financial instruments for the market.
The startup has also announced the launch of its digital marketing-focused corporate credit card in partnership with SBM Bank and Visa. The founders of velocity believe that the credit requirements of pure-play online businesses, which are generally used for working capital and digital marketing, are still not met by banks or capitalists.
Velocity provides credit for online businesses based on the revenue flow of the companies. The repayment of the credit to Velocity is taken from the revenues generated by these online businesses with a certain fixed fee.
“We have the capability to understand the various data points of online businesses and extract the relevant financial information to feed into our credit model to provide the money,” says, AbhiroopMedhekar, Co-founder and CEO, Velocity. Using the personal credit card for paying off their digital marketing expenses leads to certain imbalances says Abhirrop.
Currently, the target segment of the startup is direct-to-consumer (D2C) businesses and online marketplaces. It takes a week time to provide a credit of up to 2 crores.
According to Velocity, over 300 online businesses have signed up for its revenue-based financing option.
“As one of the fastest-growing economies in the world, India’s digital ecosystem is at an inflection point. We have been impressed with Velocity’s strong customer orientation and aggressive plans to build innovative financing solutions,” says, James Fitzgerald, Founding Partner, Valar Ventures.
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