Velocity commits ₹100 crore to scale AI-led shipping platform

Velocity has announced a ₹100 crore investment to expand its AI-led logistics business, Velocity Shipping, as the company targets higher shipping volumes and deeper integration across the e-commerce logistics value chain. The platform, earlier known as Shipfast, was recently rebranded as Velocity Shipping and now contributes around 40 per cent of the company’s total revenue.

The investment will be deployed over two years and funded through internal cash reserves and revenues generated from Velocity’s core operations. The company said the capital will support hiring, product development and AI innovation across logistics workflows as it positions shipping as a key growth pillar.

Since its launch in 2025, Velocity Shipping has onboarded more than 900 brands, with about 60 per cent coming from Velocity’s existing ecosystem. The platform reported 70 per cent month-on-month growth in order volumes and processed more than 10 lakh orders in December 2025, placing the company among India’s top three shipping aggregators by order volume. Velocity aims to achieve a fivefold increase in monthly shipping volumes in 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 thousands of founders, it became clear that logistics and fulfilment 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,” said Abhiroop Medhekar, co-founder and CEO of Velocity. “Its rapid adoption has reinforced our belief in shipping as a major growth engine for Velocity. This ₹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,” Medhekar added.

The company said rising consumer expectations around delivery speed have reshaped competition among digital-first brands, with shipping performance influencing purchase completion, customer experience and repeat sales. Velocity pointed to data from the DHL eCommerce Trends Report 2025, which found that 81 percent of shoppers abandon their carts if their preferred delivery option is unavailable. The company said logistics challenges such as missed pickups, non-delivery reports and delayed cash on delivery settlements continue to impact growth and customer trust.

Velocity Shipping was developed in collaboration with brands within Velocity’s portfolio to address these challenges through a technology-driven logistics model. The platform supports same-day, next-day, express and standard deliveries and integrates multiple third-party logistics partners, including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees. Through a single interface, brands can access courier networks across more than 19,000 pincodes across India.

A key component of the platform is an AI-powered intervention layer that monitors shipments throughout the order lifecycle. The system validates addresses, deploys local language voice agents through Vani AI to encourage conversion of cash on delivery orders to prepaid, and verifies non-delivery reports. When a shipment is flagged as non-delivered or returned to origin, the platform initiates AI calls to customers to confirm the issue and reduce false delivery attempts.

According to the company, orders verified through WhatsApp and AI-led calls achieve delivery rates 1.85 times higher than unverified shipments, based on more than 2.4 lakh AI-assisted verification calls conducted on the platform. The company said these interventions have enabled recovery of 60 to 70 per cent of failed deliveries where buyers remain interested, while reducing return-to-origin rates by 8 to 10 percentage points.

Velocity Shipping has also introduced an AI-led billing verification process to address weight discrepancy disputes raised by courier partners. Instead of automatic deductions, billing adjustments are processed only after sorted images provided by courier partners are verified, allowing brands to review and validate discrepancies before charges are applied.

Founded in 2020, Velocity has expanded from a capital provider into a full-stack platform offering 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 across capital deployment and logistics services.