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Velocity has earmarked INR 100 crore to expand Velocity Shipping, its logistics arm, over the next two years, funding the move entirely through internal resources. Launched in 2025, the platform has onboarded over 900 brands and now contributes nearly 40 per cent of the company's total revenue, with strong month-on-month order growth. The investment will focus on hiring, product development, and AI-led logistics solutions. Velocity Shipping partners with major 3PL players and services over 19,000 pincodes across India.
E-commerce enablement platform Velocity has set aside INR 100 crore to scale up its logistics vertical, Velocity Shipping, over the next two years. The company said the planned investment will be funded entirely through internal cash reserves and revenue generated from its existing businesses, without raising external capital for this expansion. Advertisement
Velocity Shipping, which was launched in 2025 after being rebranded from Shipfast, has onboarded more than 900 brands so far. The company said the logistics platform is currently recording around 70 per cent month-on-month growth in order volumes. It has also emerged as a major contributor to the group's business, accounting for nearly 40 per cent of Velocity's overall revenues.
The INR 100 crore allocation will be used across strategic hiring, product development, and artificial intelligence-driven initiatives aimed at strengthening the logistics value chain. As part of this push, Velocity plans to double the size of its shipping team. Senior-level hires have already been made to improve last-mile delivery capabilities, which remain a critical factor for digital-first brands operating at scale.
Velocity Shipping works with multiple third-party logistics partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees. Through these partnerships, the platform currently services more than 19,000 pincodes across India, giving it wide national reach in both metro and non-metro markets.
The company explained that Velocity was originally set up to address funding gaps faced by digital-first brands. However, as it worked closely with a growing base of founders, logistics and fulfilment emerged as equally pressing challenges. This led to the decision to build a dedicated shipping and fulfilment solution tailored to the needs of online-first businesses.
Founded in 2020, Velocity operates across capital financing, logistics, data-driven insights, and AI-led solutions. Its financing arm has already disbursed over INR 1,100 crore to date, supporting several D2C brands such as Frido, Bellavita, Koskii, Bewakoof, Soulflower, Rynox Gears, NasherMiles, Hammer, Zlade, The Bear House, Off Duty and Chumbak. The company expects its financing business to turn profitable in 2026.
Source PTI
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