FAQS About Growth Capital
What does Velocity offer?
Velocity facilitates 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 fixed monthly repayment, and you can raise anywhere between Rs. 5 lakhs to 3 crores depending upon your business's performance and requirements.
Term Loan: In case of a term loan, Company A would pay back a total of Rs 42.4 lakhs (Rs. 40 lakhs + 6% of 40 lakhs), through EMI payments over 6,9,12 months.
It's that simple! No other interest component, no processing fee. Nothing else.
How does Velocity's revenue based financing differ from other financing options?
Is Velocity's revenue based funding a substitute for Venture Capital? How is Velocity different from Venture Capital?
Which type of companies can apply for financing from Velocity?
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 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.
What type of expenses can Velocity fund?
How long will the entire process take?
What information will I need to provide while availing financing from Velocity?
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.
How safe is my data with Velocity?
After approval how can I access the funds? How will the funds be deployed?
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.
Can I apply for subsequent rounds of financing from Velocity as my business grows?
How is the repayment made?
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.