Velocity to Invest ₹100 Cr to Scale AI-Led Shipping Platform

Velocity plans ₹100 crore investment to expand its AI-driven shipping platform, enhancing logistics efficiency and technology adoption across operations

Velocity to Invest ₹100 Cr to Scale AI-Led Shipping Platform
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E-commerce enablement platform Velocity on Monday said it has earmarked Rs 100 crore to scale its logistics business, Velocity Shipping, over the next two years.

The investment will be funded entirely through internal cash reserves and revenues from the company's core businesses.

Since its launch in 2025, Velocity Shipping (formerly Shipfast) has onboarded over 900 brands. The platform is currently witnessing 70 per cent month-on-month growth in order volumes, according to a company statement, and now contributes nearly 40 per cent of Velocity's overall revenues.

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The Rs 100 crore investment will be directed toward strategic hiring, product development, and AI-led innovation across the logistics value chain.

The company plans to double its shipping team and has already made senior hires to strengthen its last-mile capabilities.

Velocity Shipping works with multiple third-party logistics (3PL) partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, and serves over 19,000 pincodes across India.

“We started Velocity by solving one of the biggest bottlenecks for digital-first brands: access to capital. As we worked closely with thousands of founders, it became clear that logistics and fulfilment were equally critical constraints to growth, but existing solutions needed to evolve to better support digital-first brands.

"This Rs 100 crore commitment reflects our long-term conviction to double down on shipping as we build category-defining digital infrastructure for India's e-commerce ecosystem," said Abhiroop Medhekar, Co-Founder and CEO, Velocity.

Velocity, established in 2020, offers services across capital, logistics, insights, and AI-led solutions.

The company's financing business is projected to become profitable in 2026.

So far, it has disbursed over Rs 1,100 crore in funding, supporting D2C brands including Frido, Bellavita, Koskii, Bewakoof, Soulflower, Rynox Gears, NasherMiles, Hammer, Zlade, The Bear House, Off Duty, and Chumbak.

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