Velocity announces Rs 400 cr fund for D2C platforms

Bengaluru: Homegrown financing platform Velocity on Monday announced a Rs 400 crore fund to support direct-to-consumer (D2C) and e-commerce brands, as the country gears up for the festive season.

The cash flow-based financing platform last year earmarked Rs 250 crore for D2C brands — a 60 per cent increase this year.

“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,” said Abhiroop Medhekar, Co-founder and CEO of Velocity.

Velocity's debt financing is designed to empower D2C and e-commerce brands to scale their operations, optimise inventory, and implement effective marketing strategies, he noted.

Festive season sales are a crucial period for digital-first brands, accounting for about 40-50 per cent of their annual sales.