Velocity, through its Lender partners, facilitates revenues based financing to companies against a fixed fees of 5-8%. Unlike traditional options (VC and Banks) the capital is offered without any equity, collaterals or personal guarantees. The repayments are made as a percentage of future revenues. The company can access anywhere between INR 10 lakhs to INR 2 crore depending upon the requirements and performance of the company.
For example, lets say Company A raises Rs 40 Lakhs through Velocity at a 6% fixed fee and 10% revenue share. In this case, Velocity shall facilitate a payment of Rs. 40 Lakhs for the company. Company would keep sharing 10% of its future revenue with Velocity until it pays back a total Rs 42.4 lakhs.
Velocity's services are currently available for direct to consumer brands and eCommerce businesses which have at least 6 months of revenue history. We work with companies that spend online to acquire customers, generate healthy revenues and accept online payments. They typically fall into the following categories: Apparel and Footwear, Beauty and Personal Care, Healthcare and Supplements, Home, Garden and Kitchen, Consumer Electronics, Food and Beverages. If you are an eCommerce business, just answer 10 quick questions on our website and you will have an answer within 24 hours.
If you are not an eCommerce business, please revisit us in a few months. We aim to expand to multiple categories of online businesses over time.
We need data of your online ad spends, inventory spends and corresponding revenues. Using this information we will be able to comeback with a term sheet for you. Apart from these we also need the basic details of your company: Promoters PAN, Business PAN, GST returns, ITRs, Certificate of Incorporation, bank statement and information on any other financing raised by the company
We believe that founders should focus on building their business instead of wasting thier time preparing pitch decks and financial projections. Therefore, we are happy to work with such readily available data and documents.
You can access funds either by submitting an invoice for direct payment to your marketing or working capital vendors. Alternatively, funds can be channeled to your Google and Facebook ad accounts directly
We are aware that revenues fluctuate from month to month. One of the key reasons why young companies avoid debt capital is due to the fixed EMI obligation it creates irrespective of the cash flows. To address this, we tie the repayments with your sales. We mutually agree on the percentage of the revenue, which is applicable till the entire capital plus fee has been repaid.