Velocity Announces INR 200 Cr Fund to Boost New-Age F&B Businesses According to the company, the fund is designed to address specific challenges faced by food and beverage (F&B) brands who often struggle to secure financing from traditional sources.

By Entrepreneur Staff

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(L-R) Saurav Swaroop, Abhiroop Medhekar, and Atul Khichariya, Co-founders of Velocity.

Cash-flow-based financing platform Velocity recently announced an INR 200 crore fund for 2025 to support restaurant and cloud-kitchen ecosystems across India.

According to the company, the fund is designed to address specific challenges faced by food and beverage (F&B) brands who often struggle to secure financing from traditional sources. The gap is said to be recognized by Velocity, which aims to enable businesses in the sector to manage capital expenditure, working capital, expansion, purchase, and even launch sub-brands effectively without impacting operational profits.

Velocity's fund is aligned with the growth in the food delivery and dining-out market and has focused on new-age food businesses and cloud kitchens in the sector, particularly those that operate via delivery platforms like Swiggy and Zomato.

Atul Khichariya, Co-Founder and COO, Velocity said that the growing appetite of consumers in India combined with the convenience of food delivery has remarkably boosted the F&B sector.

"The 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," said Khichariya.

Since its inception in 2020, Velocity has funded brands such as IDC Kitchen, Smoor, Daily Sushi, Brahma Brew Works, Milano Ice Cream, Imperio, Amore Gelato, Jamie's Pizza, and Babas Chicken.

Abhishek Manikchand Baldota, Director at IDC Kitchen, said, " Velocity has been instrumental in the growth of our business and has become an invaluable partner in our journey to success. The beauty of Velocity's financing lies in its true sense of partnership. We felt like we had gained a financial partner genuinely invested in our success. With Velocity's support, we have been able to accelerate our expansion plans, invest in inventory, and scale our marketing efforts"

Minseong Seok, Founder of Daily Sushi, said, "The partnership with Velocity went beyond providing funds. They ensured independence and transparency through the right integration of technology and support from a dedicated team."
Entrepreneur Staff

Entrepreneur Staff

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