Leading cash flow-based finance platform in India, Velocity, has set aside Rs. 400 crore to help D2C and E-commerce firms with their financing needs for the impending holiday season sales. The industry’s anticipation of a larger festive season in 2024 are highlighted by the fact that this year’s allocation is more than 60 per cent more than the Rs. 250 crores Velocity set aside in 2023.
For digital-first firms, the holiday season is a critical time for sales, making up between 40 and 50 percent of total revenues. Access to funding becomes crucial in this high-stakes scenario for D2C firms trying to grow and satisfy the spike in demand. This is where platforms such as Velocity’s debt financing come into play.
With this funding, brands and sellers on well-known e-commerce sites like Amazon, Flipkart, Myntra, and Shopify as well as on cutting-edge quick commerce sites like Blinkit, Instamart, and Zepto will be able to expand their product offerings, expedite delivery, and take advantage of cutting-edge trends like premiumisation. Depending on the category, rapid commerce accounts for 15–30 per cent of revenues this year, making it a significant sales channel for brands.
In addition to helping D2C and e-commerce firms remain competitive in the quickly changing world of online retail, alternative debt capital enables them to obtain funding without reducing equity. During seasonal peaks, this type of debt capital is particularly helpful since it enables firms to allocate more resources into marketing, inventory, and omnichannel development.
Commenting on this announcement, Abhiroop Medhekar, Co-Founder and CEO of Velocity, said, “Velocity’s debt financing is specifically designed to empower D2C and E-commerce brands to scale their operations, optimise inventory, and implement effective marketing strategies. By providing the financial support they need, we’re excited to support the growth journey of several brands as they prepare to capitalize on the festive season demand and e-commerce growth.”