Aim to Set AI Benchmarks for Fintech Efficiency and Service Quality: Velocity Co-founder He emphasizes that their alternative debt financing model empowers businesses to scale confidently by accessing funds exactly when they need them

The 2020-founded financing platform Velocity, which has backed 1200+ brands and disbursed over INR 900 crore, is going strong on its artificial intelligence (AI) innovations for the financial sector.

"Velocity aims to set a new benchmark for AI-driven efficiency and service quality in the financial sector, driving forward our vision of being a pioneer in AI-led fintech solutions," shares Saurav Swaroop, co-founder and CTO, Velocity.

The rise of Indian digital-first businesses has transformed the country's startup ecosystem, with the market size expected to reach USD 250 billion by 2030. However, access to timely, flexible capital remains a challenge for countless digital-first businesses in India. Traditional financial channels struggle to keep pace with the unique requirements of Micro, Small, and Medium Enterprises (SMEs), Direct-to-Consumer (D2C) brands, and e-commerce ventures that fuel today's economy.

Velocity is using AI to analyse the vast digital footprint generated by businesses—from its online operations, such as marketplace sales, marketing platforms, and GST returns, to bank statements- in order to make sound financial decisions and provide funds for D2C, SaaS, EdTech, and Restaurant players.

"Less than one per cent of the one million digital-first businesses manage to attract funding from banks or venture capital due to conventional barriers like collateral requirements and lengthy approval cycles. These businesses, often lean and capital-efficient, lack the traditional assets banks require, such as property or machinery, making financing elusive," says Swaroop.

"These technologies enable us to harness digital data for precise, rapid credit underwriting, allowing us to assess the financial health of digital-first businesses with unmatched accuracy. Our machine learning models expedite financing decisions and offer real-time transparency through an intuitive dashboard, where customers can monitor revenue flow, credit limits, and financing options—all at a glance," adds Swaroop.

He firmly feels that AI and Machine Learning (ML) are integral when it comes to its core business operations and functions.

It has disbursed over INR 900 crore towards Soulflower, Chumbak, Off Duty, Itsy Bitsy, and Bear House to name a few. In 2023 alone, it had an outlay of over INR 400 crore towards high-growth D2C brands and e-commerce businesses—a figure that exceeds its total disbursements from the past three years combined.

He emphasizes that their alternative debt financing model empowers businesses to scale confidently by accessing funds exactly when they need them. He further adds, "To support increased demand during the festive season—a peak time for sales and consumer spending in India—we recently launched an INR 400 crore festive fund specifically to help e-commerce and D2C brands prepare for the heightened demand."

AI offerings and aspirations

Velocity offers a range of innovative AI solutions primarily focused on enhancing customer interactions and operational efficiencies, particularly in the financial services sector. Among innovative offerings is Vani AI, an interactive calling solution built with generative AI to communicate seamlessly in Indian languages and dialects. It has successfully completed over 2,000 calls across customer touchpoints.

Unlike traditional IVR systems, Vani AI engages in dynamic, two-way conversations, comprehending and responding to customer queries based on proprietary data and past interactions. "It's boosting our internal efficiency and conversion rates," explains Swaroop. According to him, Vani AI is now on the waitlist of several banks, fintechs, insurers, and D2C brands. "We're currently piloting Vani AI with several institutions, setting a new benchmark in customer experience for the industry at large," he says.

While discussing Velocity's future projects, Swaroop shares that the company will continue its AI-driven evolution, with the ambition to become an AI-first company.

"Our approach involves deploying and refining AI solutions internally before introducing them to the market—a strategy that proved successful with Vani AI," says Swaroop.

He also mentions that the company's initiatives to set benchmarks in the fintech space will include developing an AI Quality Check (QC) agent to provide real-time feedback on call center interactions and an AI-powered credit analyst to assist human underwriters in loan approvals.

Summing it up, he concludes, "We believe today's business leaders deserve better—faster capital, a seamless experience, and, above all, a financial partner invested in their growth."