Velocity announces Rs 200 crore fund to fuel growth of restaurants and cloud kitchens

Velocity, an Indian cash-flow-based financing platform, has earmarked Rs 200 crore in 2025 to support and accelerate growth in the restaurant and cloud kitchen ecosystem across India.

According to the company, the fund is specifically designed to address the unique challenges faced by F&B brands and help them grow.

It 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.

Rise of the food delivery market in India

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.

The report mentioned that the surge is driven by rising disposable incomes, evolving consumer preferences, and the expanding reach of food aggregator platforms.

Velocity said that its fund is 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.

"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," said Atul Khichariya, Co-Founder and COO of Velocity.

Velocity portfolio brands

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.

The funds helped these businesses to expand operations, strengthen supply chains, and enhance marketing efforts.

Founded in 2020 by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity claims to have disbursed over Rs 1,000 crore, 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.