Velocity Launches Rs 300 Crore Fund for B2B SaaS Growth

By siliconindia  |  Friday, 12 January 2024, 09:37 IST

Velocity Launches Rs 300 Crore Fund for B2B SaaS Growth
Velocity, a platform specializing in revenue-based financing, has introduced a Rs 300 crore growth-oriented fixed-term credit capital fund specifically tailored for B2B software-as-a-service (SaaS) enterprises. The objective of this fund is to furnish SaaS companies with a fixed-term credit product, extending financing ranging from 3X to 6X of their monthly recurring revenue. The repayment plan is structured over a 12-month period.
Abhiroop Medhekar, Founder and CEO of Velocity, underscored the significance of adaptable and empathetic capital solutions tailored for SaaS businesses, particularly during the initial phase marked by substantial investments. He expressed, "Our financing is crafted to meet these distinct needs, ensuring that SaaS enterprises possess the essential resources for innovation, effective marketing, and efficient scaling".
Established in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity specializes in delivering lending-tech products for fixed-term credit, revenue-based financing, revenue-based overdraft, and credit line requirements. In 2023, the company disbursed over Rs 400 crore, exceeding its total disbursements from the preceding three years combined. It concentrates on high-growth direct-to-consumer (D2C) brands and ecommerce businesses, with funded brands in its portfolio such as French Crown, Chumbak, and IDC Kitchen.
Velocity aims to offer selected companies growth capital without requiring equity dilution, empowering them to expand operations, hasten product development, and broaden their market presence. 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 secured $20 million in Series A funding in November 2021, led by Peter Thiel’s Valar Ventures.

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