Investment funded through internal accruals will drive AI innovation, team expansion, and a fivefold shipment growth target by CY26
Velocity, an ecommerce enablement platform, on Monday revealed plans to invest Rs 100 crore to expand its logistics arm, Velocity Shipping, as it sharpens its focus on AI-driven supply chain solutions for digital-first brands.
The capital infusion, scheduled over the next two years, will be financed entirely through the company’s internal accruals and revenues generated by its core operations.
Velocity said the funds will be used to strengthen hiring, accelerate product innovation, and deepen the use of artificial intelligence across the end-to-end logistics ecosystem.
As part of the expansion, the company intends to double the size of its shipping division. It has already brought in senior talent from firms such as NimbusPost, Pickrr, Delhivery, and Shiprocket to bolster its shipping and last-mile delivery operations. Velocity is also aiming for a fivefold jump in monthly shipment volumes during calendar year 2026 (CY26).
In a company statement, Velocity noted that persistent industry issues, including missed pickups, fraudulent delivery attempts, slow issue resolution, and delays in cash-on-delivery (COD) remittances, continue to affect growth, profitability, and customer confidence.
According to the Ecommerce 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 debut in 2025, Velocity Shipping reports strong traction, onboarding more than 900 brands so far, about 60 per cent of which are from Velocity’s existing network. The platform is currently recording 70 per cent month-on-month growth in order volumes and now accounts for nearly 40 per cent of the company’s total revenues. In December 2025 alone, it handled over one million orders.
Backed by Peter Thiel’s Valar Ventures, Velocity has raised upwards of $30 million to date and works with more than 4,000 direct-to-consumer and digital-first brands. Its logistics network spans partnerships with multiple third-party providers, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel, and XpressBees, covering more than 19,000 pincodes across India.
