Velocity commits Rs 100 Cr to expand AI-led shipping platform

Ecommerce enablement company Velocity said it has earmarked Rs 100 crore to scale its logistics arm, Velocity Shipping, as it looks to expand its presence in the shipping aggregation market and invest in AI-driven tools across the logistics chain.

Velocity Shipping — formerly known as Shipfast — will receive the investment over the next two years, funded through internal accruals and revenue from the company’s core businesses, Velocity said in a statement.

Launched in 2025, the shipping platform has onboarded more than 900 brands, around 60% of which are existing Velocity partners. The company said the logistics vertical now contributes roughly 40% of overall revenue and recorded about 70% month-on-month growth in order volumes. In December 2025, the platform processed over one million shipments, according to the company.

Velocity plans to deploy the capital toward hiring, product development and AI-led interventions designed to address delivery verification, returns management and billing reconciliation. The company said it intends to double its shipping team and has hired senior executives with prior experience at logistics firms including NimbusPost, Pickrr, Delhivery and Shiprocket. It is targeting a fivefold increase in monthly shipping volumes in calendar year 2026.

“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. Velocity Shipping was built as a strong, operator-first alternative to existing shipping solutions, with reliability and accountability at its core,” said Abhiroop Medhekar, co-founder and CEO of Velocity.

“Its rapid adoption has reinforced our belief in shipping as a major growth engine for Velocity. This ₹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,” Medhekar added.

Logistics efficiency has become a growing concern for direct-to-consumer (D2C) brands, particularly as customer expectations around delivery speed and reliability increase. Industry reports suggest delivery options can influence purchase decisions, with missed deliveries and return-to-origin shipments affecting margins and customer experience.

Velocity Shipping aggregates multiple third-party logistics providers, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, and offers same-day, next-day and standard delivery options across more than 19,000 pincodes, the company said.

A key component of the platform is an AI-driven intervention layer that verifies addresses, automates customer outreach and reviews delivery exception reports. Velocity said AI-assisted calls and messaging workflows are used to confirm delivery details and address failed shipments. According to internal company data, orders verified through these systems show higher completion rates compared with unverified shipments, while return-to-origin cases have declined.

The platform also applies automated checks to billing disputes related to shipment weight, using image verification workflows before adjustments are made, the company said.

Founded in 2020, Velocity initially focused on providing non-dilutive capital to digital-first brands and has since expanded into logistics and analytics services. The company said its financing business is expected to reach profitability in calendar year 2026.