Velocity announces ₹200 Cr fund to fuel growth of restaurants and cloud kitchens selling on food aggregator platforms

Velocity announces ₹200 Cr fund to fuel growth of restaurants and cloud kitchens selling on food aggregator platforms

Velocity aims to empower F&B brands by providing fast, scalable, and flexible financing solutions tailored to their growth needs.

 

Bengaluru, December 19, 2024:

 

Velocity, India’s leading cash-flow based financing platform, has earmarked 200 Cr in 2025 to support and accelerate growth in the restaurant and cloud kitchen ecosystem across India.

The fund is specifically designed to address the unique challenges faced by F&B brands and help them grow. F&B brands often struggle to secure financing from traditional sources like banks and NBFCs. Recognizing this gap, Velocity offers cash-flow based financing, enabling restaurants and cloud kitchens to effectively manage capital expenditure, working capital, open new outlets, purchase equipment, and launch sub-brands under existing ones without impacting operational profits.   

India’s food delivery and dining-out market is projected to nearly double, growing from ₹5.5 trillion to ₹9 trillion by 2030, according to a report by Swiggy and Bain & Company. This surge is driven by rising disposable incomes, evolving consumer preferences, and the expanding reach of food aggregator platforms. Velocity’s fund is perfectly aligned with this growth and has placed a strong focus on empowering new-age restaurants and cloud kitchen brands, particularly those operating via food aggregator platforms like Zomato and Swiggy. 

Commenting on the fund launch, Atul Khichariya, Co-Founder and COO, Velocity said, “The growing appetite of Indian consumers for diverse culinary experiences, combined with the convenience of online food delivery, is driving remarkable growth in the F&B sector. This shift is also fueling a premiumization trend, as consumers increasingly seek high-quality food and beverage options, reflecting their willingness to spend and indulge in unique dining experiences. Velocity’s cash-flow based financing model ensures that F&B brands can scale seamlessly while maintaining financial flexibility.”

Since 2020, Velocity has funded several notable F&B brands such as IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice cream, Imperio, Amore Gelato, Jamie's Pizza, and Babas Chicken. These businesses utilized the funds to expand operations, strengthen supply chains, and enhance marketing efforts.

 

Elaborating on Velocity’s role in shaping IDC Kitchen’s growth story, Abhishek Manikchand Baldota, Director - IDC Kitchen, said, “ Velocity has been instrumental in the growth of our business and has become an invaluable partner in our journey to success. The beauty of Velocity's financing lies in its true sense of partnership. We felt like we had gained a financial partner genuinely invested in our success. With Velocity's support, we have been able to accelerate our expansion plans, invest in inventory, and scale our marketing efforts”

Minseong Seok, Founder of Daily Sushi, added “The partnership with Velocity went beyond providing funds. They ensured independence and transparency through the right integration of technology and support from a dedicated team.”

India’s F&B industry is undergoing a rapid transformation driven by the convergence of quick commerce, cloud kitchens, and ultra-fast delivery models. Platforms like Zepto, Swiggy Instamart, and Blinkit have introduced 10-minute delivery services such as Zepto Cafe, Bolt, and Bistro. Bigbasket and Magicpin are also preparing to enter this space, while emerging players like Swish and Zing are also gaining traction. This shift to ultra-fast delivery is redefining convenience for consumers, pushing F&B brands to adapt swiftly. Moreover, initiatives like the Open Network for Digital Commerce (ONDC) are enabling F&B brands to extend their reach beyond traditional marketplaces, unlocking new revenue streams in India’s evolving food delivery ecosystem.

To stay competitive, F&B brands are embracing technologies to better understand consumer behavior, standardize processes and are investing in automation and machinery. As India’s F&B sector evolves rapidly, Velocity’s ₹200 crore fund is designed to support new-age innovators in the space. By offering fast, scalable, and flexible financing solutions, Velocity enables F&B brands to seize emerging market opportunities, scale operations, and meet increasing consumer demand.

About Velocity:

Velocity is India’s leading cash flow-based financing platform for new-age businesses, focused on democratizing access to working capital for this traditionally underserved sector. Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity leverages these digital-first businesses’ abundant data and robust online cash flows to offer innovative financing solutions.Through partnerships with 26 ecosystem players, including four of the largest marketplaces, Velocity provides non-dilutive debt financing to E-commerce founders.

Since its inception, Velocity has disbursed over ₹1000 crores, enabling over 1,200 digital-first businesses, to overcome working capital challenges. The Bengaluru based fintech has raised $30 million in equity funding led by Peter Thiel’s Valar Ventures. Its portfolio includes many of India’s fastest-growing D2C brands like Soulflower, Chumbak, and Off Duty to name a few.

 

 

For more information, please visit: https://www.velocity.in/