Velocity earmarks Rs200 cr to invest in restaurant & cloud kitchen ecosystem during 2025
According to the fintech platform, F&B brands often struggle to secure financing from traditional sources like banks and NBFCs. To address such gap, Velocity offers cash-flow based financing, enabling restaurants and cloud kitchens to effectively manage capital expenditure and working capital
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Bengaluru: Velocity, a cash-flow based financing platform, has earmarked Rs 200 crore in 2025 to invest in the growing restaurant and cloud kitchen ecosystem across India. The fund is specifically designed to address the unique challenges faced by F&B (food & beverage) brands and help them grow, the company said in a release.
According to the fintech platform, F&B brands often struggle to secure financing from traditional sources like banks and NBFCs. To address such 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.
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 fuelling 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.”
India’s food delivery and dining-out market is projected to nearly double, growing from Rs 5.5 trillion to Rs 9 trillion by 2030, according to a report by Swiggy and Bain & Company. Velocity’s new fund is aimed at cashing in the new opportunities coming up in this space. 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, the release added.
