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B2B SaaS Innovation: Velocity's 300 Cr Growth Capital Fund

  1. Launch of Growth Capital: Velocity, a cash flow-based financing platform, has announced the initiation of a Rs 300 crore growth capital fund specifically targeted at Indian B2B Software-as-a-Service (SaaS) businesses.

  2. Partnerships with NBFCs: To facilitate this initiative, Velocity has established partnerships with India's leading Non-Banking Financial Companies (NBFCs) and regulated entities, leveraging their support for the deployment of the growth capital.

  3. Fixed Term Credit Product: Velocity's offering includes a fixed-term credit product designed to provide SaaS businesses with financing equivalent to 3 to 6 times their monthly recurring revenue.

  4. Equity Preservation: Selected SaaS companies can access growth capital without diluting their equity. This approach allows these businesses to scale operations, accelerate product development, and expand their market reach while preserving ownership.

  5. Loan Details: Velocity provides credit ranging from Rs 50 lakhs to 5 crores for a 12-month period. The financing is structured based on the businesses' data and online cash flows, offering innovative financial solutions.

  6. Loan Disbursement and Investments: In 2023, Velocity claims to have disbursed loans exceeding Rs 400 crore and has surpassed 2,000 lifetime investments. Notable brands funded by Velocity in the previous year include French Crown, Iconic Fashion, Soulflower, Chumbak, IDC Kitchen, Off Duty, Itsy Bitsy, Bear House, and Zlade.

  7. Funding and Backing: Established in 2020, Velocity has raised a total of $30 million in funding, with significant support from investors like Peter Thiel’s Valar Ventures. This financial backing underscores the platform's credibility and potential for growth in the financial technology sector.


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