Velocity, a cash flow-based financing platform, has earmarked ₹400 crore to support the financing needs of D2C and e-commerce brands in the upcoming festive season sales.
This year’s allocation is over 60 per cent more than the ₹250 crore earmarked by Velocity in 2023, said the company.
Festive season sales, spread around the months of October and November, account for about 40-50 per cent of its annual sales.
“In this high-stakes environment, access to capital becomes a critical factor for D2C brands looking to scale up operations and meet the surge in demand. That’s where debt financing provided by platforms like Velocity really makes a difference,” a statement said.
Quick commerce
Quick commerce has emerged as an important sales channel for brands, driving 15-30 per cent of sales depending on category.
The company facilitates debt financing that allows brands to invest in inventory, marketing and operational expenses without diluting equity. These brands are sellers on major e-commerce platforms such as Amazon, Flipkart, Myntra and Shopify and quick commerce platforms like Blinkit, Instamart and Zepto.
Alternative debt capital not only helps D2C and e-commerce brands stay competitive in the rapidly evolving online retail landscape but also allows them to secure financing without diluting equity. This form of debt funding is especially useful during seasonal peaks, allowing brands to invest more in inventory, marketing, and omnichannel expansion.
According to a RedSeer report, e-commerce sales are projected to see 20 per cent growth in the 2024 festive season as compared to 13 per cent growth in e-commerce GMV (gross merchandise value) last year.
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 personalised 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 $325 billion and attracting 500 million shoppers by 2030. By providing the financial support they need, we’re excited to support the growth journey of several brands as they prepare to capitalise on the festive season demand and e-commerce growth.”
Velocity’s portfolio in the e-commerce space includes Chumbak, Koskii, Power Gummies, Bella Vita Organic and Blaupunkt.