New Delhi, Jan 10 (SocialNews.XYZ) Homegrown fintech startup Velocity on Wednesday announced an ambitious Rs 300 crore growth capital fund dedicated to empowering the next wave of B2B software-as-a-service (SaaS) businesses in the country.
According to the company, Velocity's offering of a fixed-term credit product is specifically designed to provide SaaS businesses with financing proportional to three to six times the amount of their monthly recurring revenue.
Selected companies will receive growth capital without the need to dilute their equity, thus enabling them to scale operations, accelerate product development, and expand their market reach.
"SaaS enterprises encounter distinctive hurdles in their expansion, mainly concerning the costs associated with customer acquisition," Abhiroop Medhekar, Founder and CEO of Velocity, said in a statement.
"These companies must allocate significant funds towards Sales and Marketing to attract customers, with the breakeven point for such investments typically falling between six to 18 months," he added.
In 2023, Velocity significantly outperformed its previous records, disbursing over Rs 400 crore -- a sum greater than its total disbursements over the last three years combined to high growth D2C brands and e-commerce businesses.
"We are offering financing that is directly proportional to their monthly recurring revenue, thus aligning the capital amount closely with the business's revenue. The repayment structure, spread over 12 months, is straightforward and suited to the unique financial rhythms of SaaS enterprises," Medhekar said.
In 2024, Velocity plans to double its e-commerce disbursements to Rs 800 crore and allocate an additional Rs 500 crore to new sectors, including B2B SaaS.
Bengaluru-based Velocity was founded in 2020 by Medhekar, Atul Khichariya, and Saurav Swaroop.
Source: IANS
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