Velocity, a Bengaluru based fintech start-up, has secured $10.3 million in seed funding led by Valar Ventures, a US-based VC firm backed by PayPal co-founder Peter Thiel. This is Valar Venture’s first investment in an Indian start up.
Velocity, founded in 2020 by Abhiroop Medhekar, Atul Khichariya and Saurav Swaroop, provides revenue-based financing of upto $280,000 with zero equity dilution or personal guarantees. Revenue-based financing is a new alternative to venture capital or bank debt, wherein repayments happen as a fixed percentage of future revenues. According to the company, the funds will be utilised for ramping up its customer base, as well as building on its products.