Velocity earmarks ₹100 crore to scale its AI-led shipping platform | Company News

E-commerce enablement platform Velocity on Monday announced ₹100 crore investment to scale its shipping platform, Velocity Shipping, as it doubles down AI-led logistics for digital-first brands.
 

The investment will be deployed over the next two years and will be funded entirely through internal cash reserves and revenues from Velocity’s core businesses.
 

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

Velocity plans to double its shipping team and has already made senior hires from NimbusPost, Pickrr, Delhivery and Shiprocket, as it strengthens its shipping and last-mile capabilities. The company is also targeting a five times increase in monthly shipping volumes in the calendar year 2026 (CY26).

 
 

According to a company statement, the investment comes on the back of challenges that shipping faces, including missed pickups, fake delivery attempts, slow escalations, and delayed COD (cash on delivery) settlements, which hurt growth, margins, and customer trust.
 

According to the E-Commerce Trends Report 2025 by DHL eCommerce, 81 per cent of shoppers abandon their carts if their preferred delivery option isn’t available. Velocity Shipping said it is building AI-powered intervention layers to address these structural gaps at scale.
 

Since its launch in 2025, Velocity Shipping said it has seen strong adoption, with more than 900 brands onboarded so far, with around 60 per cent of these coming from Velocity’s existing ecosystem. The platform is currently witnessing 70 per cent month-on-month growth in order volumes and now contributes nearly 40 per cent to overall revenues. In December 2025 alone, it processed over one million orders.
 

Backed by Peter Thiel’s Valar Ventures, Velocity has raised over $30 million so far and has partnered with more than 4,000 direct-to-consumer and digital-first brands. The platform works with multiple third-party logistics partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, and serves over 19,000 pincodes pan-India.