Food & Beverage / Cloud Kitchen
Business Loans
₹50 Lakh Business Loan Approved for a Rapidly Growing Cloud Kitchen Chain
How WizBiz helped a Pune cloud kitchen chain secure ₹50 lakh business loan after 2 bank rejections, enabling expansion from 4 to 6 outlets.
Business Loan for Cloud Kitchen | Case Study | WizBiz
Business Loan, Cloud Kitchen, F&B, NBFC, Pune, Startup Funding
WizBiz Team
Challenge
FlavorCloud Kitchen, a chain of 4 cloud kitchen facilities in Pune, had grown rapidly to ₹2.4 crore annual revenue within 18 months. They needed ₹50 lakh for expansion — opening 2 new locations and upgrading their kitchen equipment. However, being a partnership firm with only 2 years of GST history, traditional banks were hesitant. Their initial loan applications were rejected by two public sector banks citing insufficient collateral and business vintage. The founders had maxed out their personal credit cards and were desperate for working capital.
Solution
Our business loan team assessed FlavorCloud's financials, GST returns, and bank statements. We prepared a comprehensive loan application package: (1) Detailed project report for the expansion; (2) Cash flow projections showing repayment capacity; (3) Business plan with market analysis; (4) GST return analysis highlighting consistent growth; (5) Digital footprint assessment including Swiggy/Zomato sales data. We identified 3 NBFCs specialising in F&B sector lending and 1 private sector bank with a startup-friendly approach. We helped the client improve their credit score by settling a small outstanding and corrected discrepancies in their credit report.
RESULTS
A private sector bank sanctioned ₹50 lakh term loan at 11.5% p.a., with a 60-month repayment tenure. The loan was structured with a 6-month moratorium on principal repayment. The client opened 2 new cloud kitchens in Hinjewadi and Kharadi within 3 months, and their revenue grew to ₹3.6 crore annually. The loan EMI is being serviced comfortably from the additional revenue generated by the new outlets.
Key Metrics
Loan Amount: ₹50 Lakh
Interest Rate: 11.5% p.a.
Tenure: 60 Months
New Outlets: 2
Revenue Growth: ₹2.4 Cr → ₹3.6 Cr (50% increase)
Previous Rejections: 2
Testimonial
Every bank turned us down because we were 'too new.' WizBiz saw the potential in our business and crafted a loan application that banks couldn't ignore. Within 45 days, we had ₹50 lakh in our account. Our new kitchens are running at 80% capacity and we're already planning the next expansion.
