Velocity Launches ₹200 Crore Fund to Support Restaurants on Food Platforms in India.

Velocity, a cash-flow-based financing platform, has launched a ₹200 crore fund to accelerate growth in India’s restaurant and cloud kitchen ecosystem. The fund is designed to address the challenges faced by F&B brands, particularly in securing financing from traditional sources like banks and NBFCs.

Velocity aims to provide cash-flow based financing to help restaurants and cloud kitchens manage capital expenditure, working capital, open new outlets, purchase equipment, and launch sub-brands without affecting operational profits.

The Indian food delivery and dining-out market is expected to nearly double, from ₹5.5 trillion to ₹9 trillion by 2030, driven by rising disposable incomes, changing consumer preferences, and the expanding reach of food platforms like Zomato and Swiggy, according to a report by Swiggy and Bain & Company.

“The Velocity fund is strategically aligned with this growth and focuses on empowering new-age restaurants and cloud kitchens, particularly those operating through food aggregator platforms,” the company said in a statement.

Atul Khichariya, Co-Founder and COO of Velocity, commented: “The increasing demand for diverse culinary experiences, coupled with the convenience of online food delivery, is fueling growth in the F&B sector. This trend also drives premiumization as consumers seek high-quality dining options. Velocity’s financing model ensures that F&B brands can scale efficiently while maintaining financial flexibility.”

Since its inception in 2020, Velocity has funded numerous F&B brands, including IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, and Jamie’s Pizza, helping them expand operations, strengthen supply chains, and boost marketing efforts.

The Indian F&B industry is undergoing a significant transformation, driven by quick commerce, cloud kitchens, and ultra-fast delivery models. Platforms like Zepto, Swiggy Instamart, and Blinkit are offering 10-minute delivery services, while new players like Swish and Zing are gaining momentum. Additionally, initiatives like the Open Network for Digital Commerce (ONDC) are helping F&B brands reach new markets, unlocking fresh revenue streams in India’s rapidly growing food delivery sector.

HBL