Vegetarian restaurant IDC Kitchen raises Rs 1.5 cr from Velocity
Bengaluru-based self-service QSR chain will use the debt funding from Thiel’s financing platform for expansion
Even as the Indian quick service restaurant (QSR) industry is poised for an aggressive growth, Bengaluru-based IDC Kitchen (Idli, Dosa, Coffee), a chain of vegetarian South Indian self-service restaurants, has raised ₹1.5 crore in debt from Peter Thiel’s Valar Ventures-backed financing platform, Velocity.
These funds will be used for marketing initiatives and other inventory-related expenses and to enhance IDC’s outreach, said a press statement. This strategic collaboration with Velocity reinforces IDC’s hold over the Indian QSR industry, said the release.
Established in 2012, IDC Kitchen has been at the helm of the QSR revolution in India, the statement further said.
IDC, which started as a single outlet, has today expanded to 11 locations in Bengaluru, two in Mumbai and one in Raichur and records ₹30 crore in revenue per annum.
QSR market size
According to Mordor Intelligence, the QSR market size is expected to be valued at $38.71 billion by 2029, compared to its current valuation of $25.46 billion. The rise of online food ordering and factors, such as low start-up costs, ease of operations, and localised menus, are expected to drive the growth further in the coming years.
Given the favourable demand outlook, the domestic QSR industry is looking at an aggressive store capex over the medium term, said the statement.
Meanwhile, Velocity, a financier of digital native brands, has been instrumental in funding a range of successful restaurants and cloud kitchens, including Caters Point, Brahma Brews, BurgerRama, Jamie Oliver’s Pizzeria, Oven Fresh, Crave by Leena, and Smoor, it added.
