Velocity facilitates revenue based financing in India for e-commerce businesses against a fixed fee of 5-8%. Unlike traditional financing options like VCs and Banks, our capital comes without any equity dilution, collateral or personal guarantees. Repayments are made as a percentage of revenues, and you can raise anywhere between Rs. 5 lakhs to 3 crores depending upon your business's performance and requirements.
Here is an example on how revenue based financing works. Let's assume Company A raises Rs 40 Lakhs from Velocity at a 6% fixed fee and 10% revenue share. In this case Company A would keep sharing 10% of its future revenue with Velocity till it pays back a total of Rs 42.4 lakhs (Rs. 40 lakhs + 6%*40 lakhs).
It's that simple! No other interest component, no processing fee. Nothing else. To know more, check out our comprehensive guide on revenue based financing that covers everything related to the topic.
Traditional financing options are broken.
Banks typically provide loans against collateral and seek personal guarantees, have long turnaround time and look for multiple years of profitability. Raising money from VCs is even more time consuming and results in equity dilution which in turn reduces control of your business.
Velocity offers a fast, flexible and non-dilutive alternative source of growth capital that currently doesn't exist in India. With revenue based business loans from Velocity, you can grow your business at your own terms without losing any equity.
We believe that for many businesses, venture capital is not the best way to fund their growth. VCs look for really large markets and an exponential growth trajectory, factors which may not hold true for a vast majority of businesses. Velocity offers a great alternative to founders that are building a healthy, profitable business and at the same want to retain control of their business.
Even for businesses that do raise VC money, we believe equity capital should not be spent on repeatable, ROI linked spends such as digital marketing and working capital. Such businesses can raise revenue based financing via Velocity and significantly reduce dilution by 30-40% in every VC round.
We exclusively work with only direct-to-consumer brands and eCommerce businesses which have at least 8 months of revenue history and minimum 10 lakhs of monthly revenues. If you fit in the above criteria, apply for revenue based financing on our website and you'll get a term sheet within 2 minutes!
If you are not an eCommerce business, please revisit us in a few months.
Velocity can finance all the expenses which are directly linked to your revenue. Primarily marketing and inventory spends.
Once you’ve filled up your online application which takes under 2 minutes, we get back to you within 24 hours. From application submission to the money being raised, the entire process wraps up within 7 days.
We request a few details like your expenditure on advertising, inventory and corresponding online revenues. Using this information, we revert with a term sheet in under 2 minutes.
We have built APIs that integrate seamlessly with sales platforms (Shopify, Amazon and WooCommerce), marketing platforms (Google, Facebook and Amazon Advertising), credit agencies and the GST portal. All this data is shared securely over our tech integrations and enables us to build a holistic overview of your business’s performance. The process is seamless and devoid of any friction.
Apart from the above, we need a few other basic details such as your PAN, business PAN, and historical bank statements.
We strongly believe that founders should focus on building their business instead of wasting time preparing pitch decks and financial projections. Therefore, we work with readily available data and documentation.
We take data security and confidentiality very seriously. Everything that you share with us is 100% confidential and secured with bank-level encryption.
Any funding that you need to access will be deployed via Velocity’s NBFC partners. While all your interactions will be with Velocity, a formal loan agreement will be signed between you and the NBFC.
You can easily access funds via the Velocity dashboard which provides easy options to add vendors, upload invoices and create payouts. It is a seamless netbanking alike interface. Within 24 hours payouts are transferred to your vendor’s account and you can verify the same on the dashboard.
Further, you can also use the dashboard to look at historical payouts and the repayment history.
Certainly! We at Velocity expect to be a long-term partner for your business. In fact as we develop a history with businesses, we frequently extend larger rounds at better terms!
Being founders ourselves, we know that revenues can fluctuate from month to month. One of the key reasons companies avoid debt is due to the fixed EMI obligation it creates irrespective of cash flows. To address this conundrum, we tie repayments to revenues.
Repayments are routed to Velocity directly via payment gateway splits, virtual accounts or NACH transactions. The entire process is extremely transparent and computations can be viewed in real time on the Velocity dashboard.
Repayments start from the subsequent day of the first disbursal of capital.
The percentage depends upon your business needs, amount of capital raised and historical business performance. This can range between 5% to 20%
Velocity offers a flexible deployment plan. To activate the facility, a small first deployment should be taken within 10 days. The remaining facility can be flexibly deployed over the next 2 months. In case of partial deployment, the fees charged and applicable revenue share will be reduced pro-rata to the amount of financing utilised.