Indian fintech startup Velocity will allocate Rs 200 crore to support the development of cloud kitchens and restaurants operating on food delivery platforms such as Zomato and Swiggy.
The initiative, set to roll out in 2025, will provide cash flow-based financing to food and beverage brands looking to expand operations, purchase equipment or invest in marketing.
“Indian consumers’ growing appetite for diverse culinary experiences, along with the convenience of online food delivery, is driving significant growth in the food and beverage space,” said Atul Khicharia, co-founder and COO, Velcity. He noted that rising disposable income and evolving dining preferences are driving the expansion, while the premiumization trend reflects consumers’ willingness to spend on high-quality meals.
Since 2020, Velocity has funded several 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.
“F&B brands often struggle to secure financing from traditional sources like banks and NBFCs. Acknowledging this gap, Velocity provides cash flow-based financing, allowing restaurants and cloud kitchens to effectively manage capital expenditure, working capital, opening new outlets, purchasing equipment to and launch sub-brands under existing brands without affecting operating profit,” the company said in a statement.
India’s food and beverage (F&B) sector is witnessing significant change, fueled by the rise of rapid commerce, cloud kitchens, and ultra-fast delivery options. Companies like Zepto, Swiggy Instamart, and Blinkit have rolled out 10-minute delivery services, along with initiatives like Zepto Cafe, Bolt, and Bistro. Meanwhile, established players like BigBasket and MagicPin are poised to compete in this space, and new entrants like Swiss and Zing are starting to make their mark.
“This shift to ultra-fast delivery is redefining convenience for consumers, forcing F&B brands to adapt quickly,” Velocity added. “To stay competitive, F&B brands are embracing technology to better understand consumer behavior, standardize processes and invest in automation and machinery. As India’s F&B sector evolves rapidly, Velocity’s Rs 200 crore fund is designed to support new-age innovations in the space. “