Revenue-based financing platform Velocity has announced the launch of a Rs 300 crore growth-focused fixed-term credit capital fund dedicated to B2B software-as-a-service (SaaS) businesses. This fund aims to provide SaaS companies with a fixed-term credit product, offering financing amounting to 3X to 6X their monthly recurring revenue, with a repayment structure spread over 12 months.
Abhiroop Medhekar, Founder and CEO of Velocity, emphasized the importance of flexible and understanding capital solutions for SaaS businesses, especially during the initial investment-heavy period. He stated, “Our financing is designed to support these unique requirements, ensuring that SaaS enterprises have the necessary resources to innovate, market effectively, and scale with efficiency.”
Established in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity specializes in providing lending-tech products for fixed-term credit, revenue-based financing, revenue-based overdraft, and credit line needs. In 2023, the company disbursed over Rs 400 crore, surpassing its total disbursements over the previous three years combined. It focuses on high-growth direct-to-consumer (D2C) brands and ecommerce businesses, with funded brands in its portfolio including French Crown, Chumbak, and IDC Kitchen.
Velocity aims to provide selected companies with growth capital without the need to dilute their equity, enabling them to scale operations, accelerate product development, and expand their market reach. In 2024, Velocity plans to double its ecommerce disbursements to Rs 800 crore and allocate an additional Rs 500 crore to new sectors, including B2B SaaS. The company had previously raised $20 million in Series A funding in November 2021, led by Peter Thiel’s Valar Ventures.
