“Getting to profitability is an important priority for us and this restructuring is a crucial step in that direction. We’ve carefully restructured our organization to avoid redundancies,” he wrote.
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“We’ve therefore had to make the difficult decision of reducing our team size by 22 individuals, which accounts for less than 14% of our total headcount,” he added.
Medhekar said that affected employees across various sectors during this transition will receive two months of salary as severance pay along with extended health benefits.
In November 2021, Velocity raised $20 million in a Series A funding round, bringing its total equity raised to $30 million.
The funding round was led by Silicon Valley billionaire entrepreneur Peter Thiel‘s Valar Ventures with participation from Presight Capital, Utsav Somani’s iSeed, Oyo’s global chief strategy officer Maninder Gulati, BlockFi founder and CEO Zac Prince and Philippe De Mota of investment firm Hedosophia. At the time of its fundraise, Velocity had said that it plans to deploy over Rs 1,000 crore in India’s ecommerce brands.
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In the blogpost on Friday, Medhekar wrote that the $20 million funding raised by the firm in 2021 remained “largely untouched”. “We’ve carefully restructured our organization to avoid redundancies. We’ve also streamlined and automated key parts of our workflows, unlocking substantial efficiency gains,” he noted.Launched in early 2020, Velocity offers revenue-based financing as an alternative to traditional venture capital and bank loans for e-commerce businesses in India.
Velocity’s portfolio features direct-to-consumer brands, including PowerGummies, Green Soul, WallMantra, BellaVita, Smoor Chocolates, and CrossBeats.
