Velocity's ₹200 Crore Fund: A Game Changer for India's F&B Sector
December 21, 2024, 5:43 am
Location: United Kingdom, England, Stratton St Margaret
Employees: 5001-10000
Founded date: 2014
Total raised: $3.83B
In the bustling world of food and beverage (F&B) in India, a new financial lifeline has emerged. Velocity, a cash-flow-based financing platform, has announced a ₹200 crore fund aimed at revitalizing the restaurant and cloud kitchen ecosystem. This initiative is not just a drop in the ocean; it’s a tidal wave of opportunity for businesses struggling to secure traditional financing.
The F&B sector in India is like a phoenix, rising from the ashes of pandemic-induced challenges. As dining habits evolve, so do the needs of businesses. Many F&B brands find themselves caught in a financial quagmire, unable to access the funds necessary for growth. Traditional banks and non-banking financial companies (NBFCs) often turn a blind eye to these emerging players. Velocity’s new fund is a beacon of hope, designed to address these specific challenges.
The fund is set to launch in 2025, targeting the burgeoning market of restaurants and cloud kitchens. With the food delivery and dining-out market projected to nearly double from ₹5.5 trillion to ₹9 trillion by 2030, the timing couldn’t be better. This growth is fueled by rising disposable incomes and a shift in consumer preferences towards convenience and quality.
Velocity's approach is refreshingly straightforward. The fund will provide cash-flow-based financing, allowing F&B brands to manage capital expenditures, working capital, and even launch new sub-brands without jeopardizing their operational profits. It’s like giving a chef the right ingredients to create a culinary masterpiece.
Atul Khichariya, Co-Founder and COO of Velocity, emphasizes the importance of this funding. The growing appetite for diverse culinary experiences among Indian consumers is reshaping the F&B landscape. As more people turn to food delivery services, the demand for high-quality options is skyrocketing. This premiumization trend reflects a willingness to spend on unique dining experiences, making it essential for brands to adapt quickly.
Since its inception in 2020, Velocity has already made significant strides in the industry. It has funded a variety of brands, including IDC Kitchen, Smoor, and Jamie's Pizza. These partnerships have proven fruitful, enabling businesses to expand operations, enhance supply chains, and ramp up marketing efforts. The success stories are a testament to the effectiveness of Velocity’s financing model.
The F&B industry is undergoing a seismic shift. Quick commerce, cloud kitchens, and ultra-fast delivery models are redefining how consumers interact with food. Platforms like Swiggy and Zomato have become household names, and new players are entering the fray, offering 10-minute delivery services. This rapid evolution demands that F&B brands stay agile and responsive.
Velocity’s fund is perfectly aligned with this transformation. By focusing on new-age restaurants and cloud kitchens, it empowers businesses to thrive in a competitive landscape. The cash-flow-based financing model ensures that brands can scale without sacrificing financial stability. It’s like giving a sprinter the right shoes to enhance their performance.
Moreover, initiatives like the Open Network for Digital Commerce (ONDC) are paving the way for F&B brands to extend their reach beyond traditional marketplaces. This opens up new revenue streams and enhances the overall ecosystem. The convergence of technology and food delivery is creating a fertile ground for innovation.
As the F&B sector continues to evolve, the need for flexible financing solutions becomes increasingly apparent. Velocity’s ₹200 crore fund is not just a financial boost; it’s a strategic move to empower businesses to navigate the complexities of the modern market. It’s a lifeline for those who dare to dream big in a rapidly changing environment.
In conclusion, Velocity’s initiative is a game changer for India’s F&B sector. It addresses the critical financing gap that many brands face, allowing them to flourish in a competitive landscape. As the market continues to grow, this fund will play a pivotal role in shaping the future of dining in India. With the right support, the F&B industry can continue to thrive, serving up culinary delights that cater to the evolving tastes of consumers. The stage is set, and the spotlight is on. The future of food in India looks promising, and Velocity is leading the charge.
The F&B sector in India is like a phoenix, rising from the ashes of pandemic-induced challenges. As dining habits evolve, so do the needs of businesses. Many F&B brands find themselves caught in a financial quagmire, unable to access the funds necessary for growth. Traditional banks and non-banking financial companies (NBFCs) often turn a blind eye to these emerging players. Velocity’s new fund is a beacon of hope, designed to address these specific challenges.
The fund is set to launch in 2025, targeting the burgeoning market of restaurants and cloud kitchens. With the food delivery and dining-out market projected to nearly double from ₹5.5 trillion to ₹9 trillion by 2030, the timing couldn’t be better. This growth is fueled by rising disposable incomes and a shift in consumer preferences towards convenience and quality.
Velocity's approach is refreshingly straightforward. The fund will provide cash-flow-based financing, allowing F&B brands to manage capital expenditures, working capital, and even launch new sub-brands without jeopardizing their operational profits. It’s like giving a chef the right ingredients to create a culinary masterpiece.
Atul Khichariya, Co-Founder and COO of Velocity, emphasizes the importance of this funding. The growing appetite for diverse culinary experiences among Indian consumers is reshaping the F&B landscape. As more people turn to food delivery services, the demand for high-quality options is skyrocketing. This premiumization trend reflects a willingness to spend on unique dining experiences, making it essential for brands to adapt quickly.
Since its inception in 2020, Velocity has already made significant strides in the industry. It has funded a variety of brands, including IDC Kitchen, Smoor, and Jamie's Pizza. These partnerships have proven fruitful, enabling businesses to expand operations, enhance supply chains, and ramp up marketing efforts. The success stories are a testament to the effectiveness of Velocity’s financing model.
The F&B industry is undergoing a seismic shift. Quick commerce, cloud kitchens, and ultra-fast delivery models are redefining how consumers interact with food. Platforms like Swiggy and Zomato have become household names, and new players are entering the fray, offering 10-minute delivery services. This rapid evolution demands that F&B brands stay agile and responsive.
Velocity’s fund is perfectly aligned with this transformation. By focusing on new-age restaurants and cloud kitchens, it empowers businesses to thrive in a competitive landscape. The cash-flow-based financing model ensures that brands can scale without sacrificing financial stability. It’s like giving a sprinter the right shoes to enhance their performance.
Moreover, initiatives like the Open Network for Digital Commerce (ONDC) are paving the way for F&B brands to extend their reach beyond traditional marketplaces. This opens up new revenue streams and enhances the overall ecosystem. The convergence of technology and food delivery is creating a fertile ground for innovation.
As the F&B sector continues to evolve, the need for flexible financing solutions becomes increasingly apparent. Velocity’s ₹200 crore fund is not just a financial boost; it’s a strategic move to empower businesses to navigate the complexities of the modern market. It’s a lifeline for those who dare to dream big in a rapidly changing environment.
In conclusion, Velocity’s initiative is a game changer for India’s F&B sector. It addresses the critical financing gap that many brands face, allowing them to flourish in a competitive landscape. As the market continues to grow, this fund will play a pivotal role in shaping the future of dining in India. With the right support, the F&B industry can continue to thrive, serving up culinary delights that cater to the evolving tastes of consumers. The stage is set, and the spotlight is on. The future of food in India looks promising, and Velocity is leading the charge.