For this, it has partnerships with India’s main NBFC’s and controlled entities. Velocity’s providing of a hard and fast time period credit score product, is designed to supply SaaS companies with financing proportional to three to six occasions the quantity of their month-to-month recurring income. In accordance with the corporate, chosen corporations will obtain development capital with out the necessity to dilute their fairness, thus enabling them to scale operations, speed up product improvement, and develop their market attain.
Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, Velocity provides credit score which ranges from ₹50 lakh to five crore for 12 months. The corporate leverages the companies’ information and sturdy on-line money flows to supply revolutionary monetary options. Its financing suite features a vary of financing merchandise resembling fixed-term credit score.
“SaaS enterprises encounter distinctive hurdles of their enlargement, primarily regarding the prices related to buyer acquisition. These corporations should allocate important funds in direction of gross sales and advertising and marketing to draw clients, with the breakeven level for such investments usually falling between 6 to 18 months. Significantly for companies on a excessive development trajectory, this leads to damaging money flows as a result of ongoing investments. This era underscores the necessity for versatile and understanding capital options that may bridge this hole. Our financing is designed to help these distinctive necessities, making certain that SaaS enterprises have the required sources to innovate, market successfully, and scale with effectivity,” mentioned Abhiroop Medhekar, Founder and CEO of Velocity.
Velocity says that it has disbursed loans price greater than ₹400 crore in 2023. The corporate additionally says that it has crossed 2,000 lifetime investments with 500 manufacturers funded final yr which embrace French Crown, Iconic Style, Soulflower, Chumbak, IDC Kitchen, Off Responsibility, Itsy Bitsy, Bear Home, and Zlade.
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