Velocity has announced an investment of ₹100 crore to expand its AI-led logistics platform, Velocity Shipping, as it looks to scale shipping volumes and deepen its presence across India’s e-commerce logistics value chain.
The investment will be deployed over the next two years and funded through internal cash reserves and revenues from Velocity’s core operations. The capital will be used for talent hiring, product development and AI-driven innovation across logistics workflows, the company said.
Formerly known as Shipfast, Velocity Shipping was recently rebranded and now contributes nearly 40 per cent of Velocity’s overall revenue. Since its launch in 2025, the platform has onboarded more than 900 brands, with around 60 per cent coming from Velocity’s existing ecosystem.
Velocity Shipping has reported 70 per cent month-on-month growth in order volumes and processed over 10 lakh orders in December 2025. The company said this places it among India’s top three shipping aggregators by order volume. Velocity is targeting a fivefold increase in monthly shipping volumes during 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 founders, it became clear that logistics and fulfilment were equally critical constraints to growth,” said Abhiroop Medhekar, co-founder and CEO of Velocity. “Velocity Shipping was built as an operator-first alternative with reliability and accountability at its core. This ₹100 crore commitment reflects our conviction to make shipping a major growth engine for Velocity,” he added.
The company said rising consumer expectations around delivery speed and reliability have intensified competition among digital-first brands, with shipping performance directly influencing conversion rates, customer experience and repeat purchases. Citing the DHL eCommerce Trends Report 2025, Velocity noted that 81 per cent of shoppers abandon carts when preferred delivery options are unavailable.
Velocity Shipping integrates multiple third-party logistics partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees, enabling brands to access courier services across more than 19,000 pincodes through a single interface. The platform supports same-day, next-day, express and standard delivery options.
A key differentiator is its AI-powered intervention layer, which monitors shipments throughout the order lifecycle. The system validates addresses, uses local-language voice agents via Vani AI to encourage conversion of cash-on-delivery orders to prepaid, and verifies non-delivery reports. When shipments are flagged as undelivered or returned to origin, AI-led calls are triggered to confirm issues and reduce false delivery attempts.
According to the company, shipments verified through WhatsApp and AI-led calls achieve delivery rates 1.85 times higher than unverified orders. Based on over 2.4 lakh AI-assisted verification calls, Velocity said the platform has helped recover 60–70 per cent of failed deliveries where buyers remain interested and reduced return-to-origin rates by 8–10 percentage points.
Velocity Shipping has also introduced an AI-led billing verification process to address courier weight discrepancy disputes. Billing adjustments are processed only after courier-provided images are verified, allowing brands to review discrepancies before charges are applied.
Founded in 2020, Velocity has evolved from a capital provider into a full-stack platform offering financing, logistics, insights and AI-driven tools for digital-first brands. The company said its financing business is expected to turn profitable in calendar year 2026 as it continues to scale operations.
