Indian e-commerce enablement company Velocity has announced a ₹100 crore (about US $11 million) investment to scale its AI-led shipping and logistics platform, Velocity Shipping (formerly known as Shipfast), over the next two years. The move reflects Velocity’s commitment to addressing persistent challenges in the logistics value chain — such as missed pickups, false delivery attempts, slow escalations, and delayed cash-on-delivery settlements — by using artificial intelligence to improve reliability and transparency for digital-first brands.
The investment will be entirely funded through Velocity’s internal cash reserves and revenues, focusing on strategic hiring, product development, and AI-driven innovation. The company plans to double its shipping team and has already brought in senior talent from major logistics providers. Velocity aims to increase its monthly shipping volumes five-fold in 2026, building on rapid growth since the platform’s 2025 launch.
Velocity Shipping has onboarded more than 900 brands so far, with about 70 % month-on-month growth in order volumes and now contributes nearly 40 % of the company’s overall revenue. It works with multiple third-party logistics partners — including Delhivery, Ekart, Amazon, Blue Dart, Blitz, Pikndel and XpressBees — and serves over 19,000 pincodes across India, positioning it as a key player in the competitive e-commerce logistics landscape.
A central part of Velocity’s strategy is using AI throughout the shipping workflow — from address validation and failed delivery intervention to reducing return-to-origin rates and improving overall delivery success. This technology-augmented approach aims to enhance customer experience, reduce operational inefficiencies, and provide direct-to-consumer brands with more predictable and scalable logistics support as they grow online.
