Velocity, a Bengaluru-based cash-flow-based financing platform, has announced a ₹200 crore fund to support the expansion of restaurants and cloud kitchens across India in 2025.
Key Highlights:
- Fund Allocation: ₹200 crore designated for 2025 to aid the growth of Indian restaurants and cloud kitchens.
- Purpose: To provide cash-flow-based financing, enabling F&B brands to manage capital expenditure, working capital, open new outlets, purchase equipment, and launch sub-brands without impacting operational profits. Financial Express
- Market Growth: India's food delivery and dining-out market is projected to grow from ₹5.5 trillion to ₹9 trillion by 2030, driven by rising disposable incomes, evolving consumer preferences, and the expanding reach of food aggregator platforms. Economic Times Retail
- Beneficiaries: Since 2020, Velocity has funded 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, aiding in their operational expansion and marketing efforts. Indian Startup News
Atul Khichariya, Co-Founder and COO of Velocity, stated, "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."
Our Opinion on the News:
Velocity's substantial fund allocation reflects a strategic move to capitalize on the burgeoning Indian F&B sector. By offering flexible financing solutions, Velocity positions itself as a pivotal enabler for restaurants and cloud kitchens aiming to scale operations and meet the increasing consumer demand. This initiative not only supports individual businesses but also contributes to the overall growth and diversification of India's food service industry.
Source: ISN