Financing platform Velocity launches Rs 200 crore fund for restaurants and cloud kitchens – SME News

Cash flow-based financing platform Velocity on Thursday said it has set aside Rs 200 crore in 2025 to support restaurants and cloud kitchens, particularly those operating through food aggregation platforms like Zomato and Swiggy . The company said the fund would address the challenges faced by F&B brands that struggle to secure financing from traditional sources such as banks and NBFCs.

Velocity offers cash flow-based financing for restaurants and cloud kitchens to manage capital expenditures, working capital, new outlet openings, equipment purchases and sub launches. -brands under existing brands without impact on operational profits.

Speaking at the launch of the fund, Atul Khichariya, Co-Founder and COO of Velocity, said, “Indian consumers’ growing appetite for diverse dining experiences, combined with the convenience of food delivery online, is driving remarkable growth in the F&B sector. This shift is also fueling a trend toward premiumization, as consumers increasingly seek out high-quality food and beverage options, reflecting their willingness to spend and indulge in unique dining experiences.

Velocity said it has funded several 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 improve marketing efforts.

Since its inception, Velocity has disbursed over ₹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. Its portfolio includes several of the fastest growing D2C brands in India, such as Soulflower, Chumbak and Off Duty, to name a few.

The Indian F&B industry is undergoing a transformation driven by the convergence of fast commerce, cloud kitchens and ultra-fast delivery models, pushing F&B brands to adapt quickly. Additionally, government initiatives such as the Open Network for Digital Commerce (ONDC) are enabling F&B brands to expand their reach beyond traditional markets and grow faster.