Bengaluru’s IDC Kitchen raises funds from Peter Thiel-backed Velocity

Bengaluru-based IDC Kitchen (Idli, Dosa, Coffee), a chain of vegetarian South Indian self-service restaurants, has raised Rs 1.5 crore in debt from Peter Thiel’s Valar Ventures-backed financing platform, Velocity.

What is the purpose of fundraising?

IDC Kitchen said the raised capital will be directed towards marketing initiatives and other inventory-related expenses. This strategic collaboration with Velocity reinforces IDC's leadership in the Indian Quick service restaurant (QSR) landscape, the company said in a release.

"As we embark on the next phase of our journey, IDC Kitchen signifies more than just a culinary service; it's a transformative culinary journey. With the support of Velocity and the unwavering love of our patrons, we are thrilled to bring the essence of South India to doorsteps across the nation. This new chapter, fueled by the recent funding from Velocity, allows us to not only maintain our high standards but also elevate the IDC experience for our valued customers," Abhishek Baldota, Director of IDC - Idli Dosa Coffee. 

Revolutionizing QSR kitchen

Founded in 2012, IDC Kitchen is aimed at revolutionizing QSR kitchen space in India. Originating as a single outlet, IDC has flourished into a dynamic culinary venture with 11 locations in Bangalore, 2 in Mumbai and 1 in Raichur.

The startup claims that it generates Rs 30 crore in annual revenue. It specializes in South Indian cuisine staples - Idli, Dosa, and Coffee.

IDC Kitchen, driven by authenticity and innovation, directly delivers the essence of South India to homes through a user-friendly online ordering system.

What did Velocity say about IDC Kitchen? 

Atul Khichariya, COO & Co-Founder of Velocity, said, "At Velocity, we are thrilled to contribute to the growth and success of IDC through our recent funding of Rs 1.5 crore." He said the partnership opens up new avenues in the dynamic landscape of restaurants and QSR chains.

The current landscape of QSR Restaurant market 

According to Mordor Intelligence, the QSR Restaurant market size is expected to be valued at $38.71 billion by 2029 compared to its current valuation of $25.46 billion. The rise of online food ordering and factors, such as low start-up costs, ease of operations, and localized menus, are expected to drive the growth further in the coming years.

Given the favourable demand outlook, the domestic QSR industry is looking at an aggressive store capex over the medium term.

Velocity is a financier of digital native brands who has invested in brands, including Caters Point, Brahma Brews, BurgerRama, Jamie Oliver's Pizzeria, Oven Fresh, Crave by Leena, and Smoor. 

Join our new WhatsApp Channel for the latest startup news updates