Velocity Announces ₹200 Cr Fund to back Restaurant, Cloud Kitchen

Velocity, a cash-flow-based financing platform, has set aside ₹200 crore for 2025 to support the growth of restaurants and cloud kitchens across India.

Funding Utilisation

The fund is designed to address the unique challenges faced by food and beverage (F&B) brands which helping them grow by offering financing without the usual struggles of traditional sources like banks and NBFCs. Velocity’s financing helps restaurants and cloud kitchens manage capital expenses, working capital, open new locations, buy equipment, and launch new sub-brands, all without affecting their operational profits.

According to a report by Swiggy and Bain & Company, India’s food delivery and dining-out market is expected to grow from $66 billion to $108 billion by 2030. Velocity’s fund aims to support this growth by focusing on new-age restaurants and cloud kitchen brands, especially those using food platforms like Zomato and Swiggy. The fund provides fast, scalable, and flexible financing to help F&B brands scale their operations and meet rising consumer demand.

Read also- Bureau Raises $30 Mn Series B Funds From Sorenson Capital, Others

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.”

Abhishek Manikchand Baldota, Director at 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.''

Since 2020, Velocity has funded several well-known F&B brands, including IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice Cream, Imperio, Amore Gelato, Jamie's Pizza, and Babas Chicken. These businesses used the funds to grow their operations, improve supply chains, and boost marketing efforts.

Advertisment

About Velocity

The Bengaluru-based Velocity was founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop. It is a cash-flow-based financing platform for modern businesses. By using data and online cash flows from digital-first businesses, Velocity provides innovative financing solutions. The company has disbursed over ₹1,000 crore to more than 1,200 digital businesses, helping them tackle working capital challenges.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.