FinanceIN

Velocity Layoffs

September 2023

Velocity announced a layoff affecting 0 employees (14% of its workforce) in September 2023. The company operates in the Finance sector.

People Affected

Percentage

14%

Announced Date

Sep 15, 2023

About

Fintech startup Velocity, a revenue-based financing platform for Indian D2C and ecommerce brands, laid off approximately 14% of its workforce earlier this week, affecting around 22 employees from various departments. The company, which had a headcount of about 150-160 prior to the cuts, stated the restructuring was aimed at eliminating redundancies, automating workflows, and achieving profitability for sustainable growth. While sources suggested the layoffs could be part of a cost-cutting measure to extend the startup's runway, CEO Abhiroop Medhekar emphasized that the decision was strategic and that most of its $20 million Series A funding from 2021 remains unused. Velocity, backed by Valar Ventures and other investors, reported a significant increase in net loss to INR 7.9 crore in FY22 despite growing revenue.