Peter Thiel-backed Velocity launches quick delivery service Shipfast for D2C brands

Velocity launched quick delivery service for D2C brands

Velocity, a revenue-based financing startup backed by Peter Thiel’s Valar Ventures, on January 15 launched a quick-delivery service for direct-to-consumer (D2C) businesses through their websites.

Shipfast  has partnered with seven logistics providers including Delhivery, Shadowfax, Ekart and EcomExpress to help businesses offer faster deliveries covering multiple cities across the country, offering four-hour, same-day and next-day shipping options.

“While access to capital drives 40-50 percent growth for D2C brands, faster deliveries can unlock an additional 30-40 percent growth by increasing customer conversions,” Velocity co-founder and CEO Abhiroop Medhekar said in a statement.

The service comes amid burgeoning demand among consumers for quick commerce. An increasing number of players, including e-commerce majors Amazon and Flipkart, have recently joined the quick commerce rush, with many even launching quick food delivery services.

Velocity has said by using Shipfast, brands can sidestep high commission fees charged by quick commerce platforms by delivering through their websites. According to reports, the commissions can vary from 15 to 35 percent.

According to a survey of over 300 D2C brands conducted by Velocity, 65 percent of e-commerce brands saw faster shipping as a key trend they need to leverage in 2025.

Shipfast incorporates a mix of internal early-warnings for delivery roadblocks, along with proprietary AI agents to ensure seamless deliveries, the company said in a statement. After the initial rollout, Velocity also will look to scale the service through potential acquisitions.

“Shipfast enables quicker commerce for D2C brands, strengthening direct customer relationships, boosting loyalty, and driving repeat purchase rates on their own websites. We’re excited to launch our product built in-house, and are actively looking to bolster it with potential acquisitions,” Medhekar said.

Founded in 2020 by Medhekar, Atul Khichariya, and Saurav Swaroop, Bengaluru-based Velocity has raised $30 million in equity funding led by Valar Ventures.

Since its inception in 2020, Velocity has funded more than 5,000 customers across its various products, including over 1,200 e-commerce businesses, disbursing more than Rs 1,000 crore in working capital, the company said. Its portfolio includes D2C brands like Soulflower, Chumbak and Off Duty.