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Velocity launches Rs 400 Cr festive season fund for D2C brands

EntrackrEntrackr ยท 10m ago
Velocity launches Rs 400 Cr festive season fund for D2C brands
Medial

Cash flow-based financing platform Velocity has launched a fund of Rs 400 crore ($48 million) to support D2C and e-commerce brands in the upcoming festive season sales. The Bengaluru-based firm had launched a Rs 250 crore fund for the festive season last year. This financing will support brands and sellers on major e-commerce platforms (such as Amazon, Flipkart, Myntra and Shopify) and new-age quick commerce platforms (like Blinkit, Instamart, Zepto) in enhancing their product assortment, accelerating delivery timelines, and capitalize on emerging trends such as premiumization. The fund will allow brands to invest in inventory, marketing, and operational expenses without diluting their equity, Velocity said in a press release. According to market research, e-commerce sales are projected to see 20% growth in the 2024 festive season as compared to 13% growth in e-commerce GMV (gross merchandise value) last year. Velocity is indulged with the largest ecommerce marketplaces and several ecosystem enablers to support the upcoming festive demand across sectors such as beauty and personal care, apparel/ fashion, consumer electronics, food and beverages, home, garden and kitchen, jewelry and accessories, healthcare and other e-commerce categories. Co-founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity focuses on democratizing access to working capital for the various sectors. The platform leverages digital-first businessesโ€™ data and online cash flows to offer innovative financing solutions. It provides non-dilutive debt financing to e-commerce founders. Velocity says that it has leveraged its partnerships with Indiaโ€™s leading NBFCs and regulated entities to empower over 1,500 e-commerce brands like Koskii, Power Gummies, Hammer, Bella Vita Organic, Bewakoof, Bunaai, Leaf, Crossbeats, Blaupunkt, Zlade, and Soulflower among others. It also says that it has disbursed over Rs900 crores, enabling over 1,500 businesses, especially D2C and e-commerce companies. Velocity has raised $30 million in equity funding led by Valar Ventures and competes with the other players in this space like GetVantage, Klub, Clearco, CRED Mint, Wayflyer, and KredX.

BlinkIt brings EMI option for orders over Rs 2,999

EntrackrEntrackr ยท 8m ago
BlinkIt brings EMI option for orders over Rs 2,999
Medial

Blinkit, the quick commerce platform, has introduced an EMI (Equated Monthly Installments) option for its customers, allowing them to split payments for purchases over Rs 2,999. This option will be available on all orders except those containing gold and silver coins. The new EMI feature is part of Blinkit's strategy to expand its customer base and drive more significant purchases on its platform. With a growing number of consumers relying on quick commerce for grocery, household items, and more, this option can make larger orders more accessible. By enabling consumers to spread payments over time could also lead to higher-value transactions, as per experts tracking this space. Currently, it has tied up with several banks such as HDFC, SBI, ICICI, Kotak Mahindra, Axis, RBL and CITI Bank to provide EMI options via credit cards. For Blinkit, introducing EMI as a payment option aligns with its focus on scaling up and increasing customer loyalty. Quick commerce is highly competitive, with companies like Blinkit, Swiggy Instamart, and Zepto all vying for market share. By facilitating such transactions, Blinkit aims to increase its average order value, a key metric in its growth strategy. Early this week, Blinkit launched the Seller Hub to enable brands to manage their presence on the platform independently, without needing intermediaries. Over 200 brands already have access, the platform offers tools for brands to control their quick commerce operations efficiently. Blinkit has emerged as a leader in the quick commerce space, and recently, HSBC valued it at around $20.8 billion, more than twice the valuation of its parent company, Zomato, which was valued at $9.2 billion by the banking firm. An EMI option, through third party lenders, is one more way to eke out margins in the tough e-commerce business. Not to mention that it might deter some deal seekers to stick with Blinkit just for the convenience of the EMI. So improved margins here too. With the wider portfolio of products like gold and mobiles etc that has been added, an EMI option was a natural progression, one could argue. So what could go wrong? Other than the typical initial costs of processes for the added feature, not much, one would imagine, with a very strong upside if it takes off well. In which case, it will not be a unique offering for too long in any case.

Zomato halts Blinkit integration, shifts focus on building super brands

Inc42Inc42 ยท 1y ago
Zomato halts Blinkit integration, shifts focus on building super brands
Medial

Foodtech giant Zomato has decided to pause the integration of its quick commerce arm Blinkit and instead focus on building "super brands." Zomato CEO Deepinder Goyal expressed that super apps have not been as successful in India as they have been in China and that Indians gravitate towards super brands. Zomato plans to maintain a separate identity for its food delivery platform and quick-commerce unit, developing Blinkit as an independent brand. The integration will primarily focus on sourcing synergies with Zomato's B2B supplies vertical, Hyperpure. Zomato's rival Swiggy has opted to integrate its quick commerce vertical, Instamart, directly into its main app. Blinkit turned contribution positive in Q2 FY24, recording 45.5 million orders during this period.

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