Revenue-based financier Velocity allocates $36 million for SaaS firms
Velocity has earmarked Rs 300 crore (about $36 million) to meet the growth capital needs of business-to-business software-as-a-service (B2B SaaS) companies over the next 18 months.
Abhiroop Medhekar, founder and CEO, told ET that the company aims to double its e-commerce disbursements to Rs 800 crore over the year, while expanding its cloud kitchen and allied restaurants portfolio.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitThe 2020-founded startup invests in ecommerce and direct-to-commerce (D2C) companies. It has made about 2,000 investments in the two segments, deploying a total of Rs 750 crore since inception. In 2023 alone, Velocity disbursed over Rs 400 crore to high-growth D2C brands and ecommerce businesses.
Backed by Peter Theil’s Valar Ventures, it offers financing as an alternative to traditional venture capital and bank loans for primarily e-commerce businesses. It partners with non-banking financial companies such as Oxyzo, U GRO Capital, CredAble and Trillionloans to finance startups.
The Bengaluru-based firm will offer a fixed term credit product designed to provide SaaS businesses with financing proportional to 3 to 6 times the amount of their monthly recurring revenue (MRR), it said in a statement.
Medhekar told ET that four of the aimed SaaS deals are already done, one of which is in Atica Global. It plans to deploy the allocated Rs 300 crore across 100 SaaS companies with ticket sizes varying from Rs 50 lakh to Rs 5
