Velocity, a Bengaluru-based fintech specializing in cash-flow-based financing, has announced a commitment of Rs 200 crore for 2025 to support the growth of restaurants and cloud kitchens across India. This initiative aims to address the unique challenges faced by F&B businesses, enabling them to thrive in a rapidly evolving market.
The fund is designed to provide financial solutions tailored to the specific needs of food and beverage brands. By offering cash-flow-based financing, Velocity allows restaurants and cloud kitchens to manage capital expenditures, working capital, and expansion without affecting operational profits. Businesses can utilize these funds to open new outlets, purchase equipment, and launch sub-brands under existing operations, ensuring smooth scaling and sustainability.
India’s food delivery and dining-out market is experiencing significant growth, with projections indicating a rise from Rs 5.5 trillion in 2023 to Rs 9 trillion by 2030, as reported by Swiggy and Bain & Company. This surge is attributed to increasing disposable incomes, evolving consumer preferences, and the expanding reach of food aggregator platforms like Zomato and Swiggy.
Velocity’s initiative aligns with this industry growth, focusing on empowering new-age restaurants and cloud kitchen brands, particularly those leveraging online platforms. Atul Khichariya, Co-Founder and COO of Velocity, emphasized the importance of financial flexibility in scaling operations. He noted that the rising demand for diverse and premium culinary experiences is fueling the growth of the F&B sector, with consumers increasingly willing to invest in high-quality dining options. Velocity’s financing model ensures that businesses can scale seamlessly while maintaining operational and financial stability.
Since its inception in 2020, Velocity has supported numerous F&B brands, including IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice Cream, Imperio, Amore Gelato, Jamie’s Pizza, and Babas Chicken. The financing provided by Velocity has enabled these businesses to expand operations, strengthen supply chains, and enhance their marketing efforts, contributing to their growth and success.
Founded by Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity has made a significant impact in the fintech space, disbursing over Rs 1,000 crore to more than 1,200 digital-first businesses. The company’s commitment to addressing working capital challenges has made it a vital partner for businesses navigating the demands of a competitive market.
In addition to its substantial funding efforts, Velocity has garnered investor confidence, raising $30 million in equity funding led by Peter Thiel’s Valar Ventures. With its innovative financing model and focus on empowering the F&B sector, Velocity is poised to play a pivotal role in shaping the future of India’s restaurant and cloud kitchen ecosystem.
