Velocity has announced a ₹100 crore investment to scale Velocity Shipping, its logistics and shipping aggregation business that was formerly called Shipfast.
The company said the capital will be deployed over the next two years, funded through internal cash reserves and revenues from its core businesses.
The move underlines a shift many digital-first brands have been feeling on the ground: in a market where customers expect deliveries to be fast and predictable, logistics isn’t just “operations” anymore, it’s a conversion lever, a retention lever, and sometimes the difference between a repeat buyer and a refund.
What Velocity is funding?
Velocity said the ₹100 crore will go into strategic hiring, product development, and AI-led innovation across the logistics value chain . The company plans to double its shipping team and said it has already made senior hires from NimbusPost, Pickrr, Delhivery and Shiprocket .
Velocity is also targeting a 5x increase in monthly shipping volumes in CY26.
The traction it’s citing
Velocity Shipping launched in 2025 and has onboarded 900+ brands, with about 60% coming from Velocity’s existing ecosystem, the company said . It also claimed the platform is seeing 70% month-on-month growth in order volumes and now contributes nearly 40% of Velocity’s overall revenues.
In December 2025, Velocity Shipping processed over 10 lakh orders; the company said this places it among India’s top three shipping aggregators by order volume.
Why the company says logistics is now a growth bottleneck
Velocity’s CEO and co-founder Abhiroop Medhekar said the company began by solving access to capital, but logistics and fulfilment emerged as equally critical constraints as it worked with founders . In its note, the company points to persistent frictions brands often face, missed pickups, alleged fake delivery attempts, slow escalations and delayed COD settlements, issues that can quietly erode customer trust.
Velocity also cited a consumer behaviour data point: 81% of shoppers abandon their carts if their preferred delivery option isn’t available, as per the E-Commerce Trends Report 2025 by DHL eCommerce.
What “AI-led shipping” means here?
Velocity Shipping says it offers same-day, next-day, express and standard deliveries and works with multiple logistics partners including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, serving over 19,000 pincodes across India.
The company’s pitch is an AI-powered intervention layer across the order journey: address validation, local-language voice agents (it names Vani AI, built in-house) to nudge COD to prepaid, and automated verification for non-delivery scenarios like NDR and RTO.
On outcomes, Velocity said orders verified via WhatsApp and AI-led calls are delivered at 1.85x the rate of unverified orders, based on over 2.4 lakh AI-assisted verification calls . It also claimed a 60–70% recovery of failed deliveries where the buyer remains interested, alongside an 8-10 percentage point reduction in return-to-origin rates.
Separately, the company says it is trying to address billing disputes around weight discrepancies by making billing adjustments only after AI-led verification of sorter images provided by courier partners.
Company background
Velocity was founded in 2020 by IIT Bombay alumni Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop. The company said it has raised $30+ million and partnered with 4,000+ D2C and digital-first brands, disbursing ₹1,100 crore in funding . It also said its financing business is expected to turn profitable in CY26.
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