Velocity strives to empower F&B brands by offering quick, scalable, and adaptable financing solutions that are specifically designed to support their growth ambitions.
Bengaluru, December 19, 2024: Velocity, India’s premier cash-flow-based financing platform, has announced a significant commitment of ₹200 crore for 2025 to fuel the growth of India’s restaurant and cloud kitchen ecosystem. The fund aims to address the specific financial challenges faced by F&B brands and provide them with the necessary resources to thrive in a rapidly evolving market.
The F&B industry has long struggled to access financing from traditional sources such as banks and NBFCs. Velocity aims to bridge this gap by offering cash-flow-based financing, empowering restaurants and cloud kitchens to manage capital expenditures, working capital, and open new outlets. This funding model allows F&B brands to launch sub-brands or purchase equipment without impacting operational profits.
According to a report by Swiggy and Bain & Company, India’s food delivery and dining-out market is set to grow from ₹5.5 trillion to ₹9 trillion by 2030, driven by increasing disposable incomes, shifting consumer preferences, and the widespread adoption of food aggregator platforms. Velocity’s fund is strategically positioned to tap into this growth, focusing on supporting new-age restaurants and cloud kitchens, particularly those partnering with platforms like Zomato and Swiggy.
Atul Khichariya, Co-Founder and COO of Velocity, commented, “The growing demand for diverse culinary experiences, coupled with the convenience of online food delivery, is propelling the growth of the F&B sector. Consumers are willing to indulge in premium dining experiences, driving a trend toward higher-quality offerings. Velocity’s cash-flow-based financing model helps F&B brands scale while maintaining financial flexibility.”
Since its inception in 2020, Velocity has funded several prominent 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 brands have used the funding to expand operations, strengthen supply chains, and enhance marketing efforts.
Abhishek Manikchand Baldota, Director of IDC Kitchen, shared, “Velocity has been a crucial partner in our business growth. Their financing approach goes beyond just providing funds; it fosters a sense of true partnership. With their support, we’ve been able to scale quickly, invest in inventory, and boost our marketing efforts.”
Minseong Seok, Founder of Daily Sushi, added, “Velocity’s partnership went beyond financing. They provided the right technological integration and support, ensuring transparency and independence in our growth journey.”
The Indian F&B industry is undergoing a rapid transformation, driven by innovations like quick commerce, cloud kitchens, and ultra-fast delivery models. Companies such as Zepto, Swiggy Instamart, and Blinkit are pioneering 10-minute delivery services, pushing the boundaries of convenience for consumers. New platforms like Swish and Zing, as well as initiatives like the Open Network for Digital Commerce (ONDC), are further enhancing the reach of F&B brands and opening up new revenue streams.
As consumer behavior shifts, F&B brands are increasingly adopting technologies to understand demand, standardize processes, and invest in automation and machinery. Velocity’s ₹200 crore fund is designed to help these innovative brands seize emerging market opportunities, scale operations, and meet the growing consumer demand.
With its fast, scalable, and flexible financing solutions, Velocity is committed to supporting the growth of India’s dynamic F&B ecosystem, enabling brands to innovate and thrive in a competitive landscape.
