Velocity announces ₹200 cr. fund to fuel growth of restaurants, cloud kitchens

Bengaluru-based Velocity, a cash-flow based financing, has announced a ₹200 crore fund in 2025 to support and accelerate growth in the restaurant and cloud kitchen ecosystem across India.

Velocity is backed by Peter Thiel’s Valar Ventures. The fund was specifically designed to address the unique challenges faced by F&B brands and help them grow. F&B brands often struggled to secure financing from traditional sources like banks and NBFCs, the company said in a statement on Thursday.

According to Velocity, the country’s F&B industry is undergoing a rapid transformation driven by the convergence of quick commerce, cloud kitchens, and ultra-fast delivery models. Platforms like Zepto, Swiggy Instamart, and Blinkit have introduced 10-minute delivery services such as Zepto Cafe, Bolt, and Bistro. To stay competitive, F&B brands are embracing technologies to better understand consumer behavior, standardize processes and are investing in automation and machinery.