Velocity Launches Shipfast to Enhance Quick Commerce for D2C Brands
Velocity, a revenue-based financing company endorsed by Peter Thiel’s Valar Ventures, has introduced a rapid-delivery service tailored for direct-to-consumer (D2C) businesses through their own websites. The service, called Shipfast, has established partnerships with seven logistics companies such as Delhivery, Shadowfax, Ekart, and EcomExpress to facilitate quicker deliveries across various cities nationwide. It provides options for four-hour, same-day, and next-day shipping.
The co-founder and CEO of Velocity, Abhiroop Medhekar, stated that access to capital contributes to a growth of 40-50 percent for D2C brands, and that improved delivery times can unlock an extra 30-40 percent growth by enhancing customer conversion rates.
This launch occurs during a time of increasing consumer demand for rapid commerce. Numerous players, including major e-commerce platforms like Amazon and Flipkart, have recently entered the quick commerce sector, with many initiating instant food delivery services.
Velocity has indicated that by employing Shipfast, brands can avoid the substantial commission fees typically charged by quick commerce platforms, as deliveries occur directly through their websites. Reports suggest that these commissions can range from 15 to 35 percent.
A survey conducted by Velocity of over 300 D2C brands revealed that 65 percent of e-commerce companies identified faster shipping as a crucial trend to leverage by 2025.
Shipfast combines internal early-warning systems to identify delivery challenges with proprietary AI technology to ensure smooth delivery processes, as mentioned by the company. Following the initial launch, Velocity aims to expand the service through potential acquisitions.
Medhekar expressed that Shipfast promotes expedited commerce for D2C brands by enhancing direct relationships with customers, increasing loyalty, and driving repeat purchases on the brands’ own websites. He added that they are thrilled to introduce their internally developed product and are keen to strengthen it further through possible acquisitions.
Founded in 2020 by Medhekar, Atul Khichariya, and Saurav Swaroop, Bengaluru-based Velocity has raised $30 million in equity financing led by Valar Ventures. Since its establishment in 2020, the company has supported over 5,000 customers across its product range, including more than 1,200 e-commerce businesses, providing over Rs 1,000 crore in working capital. Its portfolio features D2C brands such as Soulflower, Chumbak, and Off Duty.
