Cash-flow based financing platform Velocity on Thursday said it has earmarked Rs 200 crore in 2025 to support restaurants and cloud kitchens, particularly those operating via food aggregator platforms like Zomato and Swiggy. The company said the fund will address the challenges faced by F&B brands who struggle to secure financing from traditional sources like banks and NBFCs.
Velocity offers cash-flow based financing for restaurants and cloud kitchens to manage capital expenditure, working capital, open new outlets, purchase equipment, and launch sub-brands under existing ones without impacting operational profits.
Speaking on the fund launch, 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 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 said it has funded multiple F&B brands since 2020 including IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice Cream, Imperio, Amore Gelato, and others to expand their operations, strengthen supply chains, and enhance marketing efforts.
Since its inception, Velocity has disbursed over ₹1000 crores, 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. Its portfolio includes many of India’s fastest-growing D2C brands like Soulflower, Chumbak, and Off Duty to name a few.
India’s F&B industry is witnessing transformation on the back of the convergence of quick commerce, cloud kitchens, and ultra-fast delivery models, pushing F&B brands to adapt swiftly. Moreover, initiatives by the government such as Open Network for Digital Commerce (ONDC) are enabling F&B brands to extend their reach beyond traditional marketplaces and grow faster.