Cash flow-based financing platform Velocity has announced the launch of ₹300 crore growth capital for Indian B2B Software-as-a-Service (SaaS) businesses.

For this, it has partnerships with India’s leading NBFC’s and regulated entities. Velocity’s offering of a fixed term credit product, is designed to provide SaaS businesses with financing proportional to 3 to 6 times the amount of their monthly recurring revenue. According to the company, 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.

Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, Velocity offers credit which ranges from ₹50 lakh to 5 crore for 12 months. The company leverages the businesses’ data and robust online cash flows to offer innovative financial solutions. Its financing suite includes a range of financing products such as fixed-term credit.

“SaaS enterprises encounter distinctive hurdles in their expansion, mainly concerning the costs associated with customer acquisition. These companies must allocate significant funds towards sales and marketing to attract customers, with the breakeven point for such investments typically falling between 6 to 18 months. Particularly for firms on a high growth trajectory, this results in negative cash flows due to ongoing investments. This period underscores the need for flexible and understanding capital solutions that can bridge this gap. Our financing is designed to support these unique requirements, ensuring that SaaS enterprises have the necessary resources to innovate, market effectively, and scale with efficiency,” said Abhiroop Medhekar, Founder and CEO of Velocity.

Velocity says that it has disbursed loans worth more than ₹400 crore in 2023. The company also says that it has crossed 2,000 lifetime investments with 500 brands funded last year which include French Crown, Iconic Fashion, Soulflower, Chumbak, IDC Kitchen, Off Duty, Itsy Bitsy, Bear House, and Zlade.

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