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Velocity Earmarks Rs.100 Crore to Scale its Velocity Shipping

CIO Insider Team | Monday, 9 February, 2026
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Velocity, India’s leading e-commerce enablement platform has announced a Rs.100 crore investment to scale Velocity Shipping (formerly Shipfast), as it doubles down on advancing faster, more reliable and transparent 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.

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The Rs.100 crore 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 5x increase in monthly shipping volumes in CY26.

“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 fulfillment 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”, says Abhiroop Medhekar, Co-Founder and CEO, Velocity.

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

Velocity Shipping enables same-day, next-day, express and standard deliveries helping brands meet rising consumer expectations without adding operational complexity.

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.

A central differentiation in how the platform solves long-standing inefficiencies across the shipping lifecycle is its AI-powered intervention layer, which operates across the entire order journey. The system validates addresses, uses local-language voice agents (Vani AI developed by Velocity’s in-house tech team) to urge the conversion of COD orders to prepaid, and automatically verifies non-delivery reports.

Orders verified through 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 completed on the platform. This proactive intervention with the platform has achieved 60-70 percent recovery of failed deliveries where the buyer is still interested and a 8-10 percentage point reduction in return-to-origin rates, directly impacting both customer experience and brand profitability for digital-first brands.

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Velocity Shipping also tackles one of the biggest pain points in logistics for digital-first businesses: transparency and opacity in shipping aggregation models. In traditional models, weight discrepancies raised by courier partners often result in automatic deductions, with brands left to reconcile charges later. Velocity Shipping reverses this approach. Billing adjustments are made only after an AI-led verification of sorter images supplied by the courier partners, ensuring discrepancies are reviewed, validated, and resolved transparently.

Founded in 2020, Velocity has evolved into a full-stack growth enablement platform for digital-first brands across capital, logistics, insights and AI-led solutions. Its financing business is expected to turn profitable in CY26.



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