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Avataar’s new Velocity tool creates AI‑driven product videos directly from URLs, already used by brands like HP and Victoria’s Secret, aiming to cut costs and
Avataar, the Peak XV and Tiger Global‑backed startup, unveiled Velocity—a tool that automatically generates product videos from a product link—on Monday [1]. The service is positioned as a low‑cost alternative to traditional video production, promising bulk creation for entire catalogs.
Key takeaways
Founded in 2015 by former Microsoft and Deutsche Bank employee Sravanth Aluru, Avataar initially focused on interactive 3D experiences for e‑commerce, raising over $55 million in funding [1]. After commercially testing an AI‑powered video creator with clients in early 2024—still requiring human assistance—the company launched the fully automated Velocity tool in September 2024 [1]. By generating videos directly from product links, Velocity aims to cover “entire catalogs” and provide motion‑rich storytelling even for items that lack dedicated video budgets, according to Aluru [1].
The startup highlights its extensive product data, gathered through prior 3D rendering work, as a differentiator. Aluru says the models understand sub‑categories and can emphasize attributes specific to each item, such as a hammer’s functional details versus a smartphone’s design cues [1]. Avataur also reports that guardrails are in place to detect and reject inaccurate or brand‑unsafe outputs before they reach customers [1].
Video continues to outperform static images in engagement, but traditional production remains expensive. Velocity’s ability to mass‑produce videos could lower barriers for brands seeking to enrich product listings with motion content, potentially improving conversion rates despite lower per‑video conversion compared with static 3D models [1]. Industry observers note that while several firms are exploring AI‑generated video, the challenge lies in maintaining quality at scale and meeting licensing standards [1]. Avataar’s rollout, already adopted by major retailers, suggests the market is moving toward automated visual content as a standard e‑commerce tool.
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The mission aims to foster local AI development by providing startups with subsidized GPU compute and infrastructure in exchange for releasing their models publicly.
Avataar uses model distillation to compress large, general-purpose models into smaller, task-specific versions that require significantly less compute power to run.
Yes, Varya is available to try on the company's website, and it will be released as an open-weight model on India's AI Kosh portal for developers.
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 12, 2026 · How we report