NEW YORK — Velocity, a booking platform for premium dining experiences, announced a landmark $22.5 million raised in Series B funding led by DIG Investments. Other participants in the round include hospitality names such as Barry Sternlicht, Founder of Starwood Hotels Group, and John Paul, one of the world’s largest concierge companies.
Following an initial $16 million secured in first round financing in 2015, Velocity’s Series B investment serves as one of the largest-ever financial backings for a technology start up in the restaurant industry and will support the company’s expansion to 29 cities worldwide by 2020.
“We are delighted to announce this milestone, which has made us one of the best-funded startups in the global space,” said Zia Yusuf, Co-Founder and Co-CEO of Velocity. “Our Series B funding is an important step forward in growing our brand, increasing our bandwidth for exciting new features and building our presence in the greatest cities around the world.”
Founded in 2014, Velocity is headquartered in London and New York, with offices in Los Angeles, Miami and San Francisco. Having grown its venue count over 800% over the last 12 months, the app has become a leading player in the premium dining space. Velocity has partnered with some of the world’s finest restaurants, including New York’s Blue Hill, Catch, Bowery Meat Company, Craft Restaurants, Toro, Lure Fishbar and Ippudo, an infamously high-demand ramen restaurant that now offers reservations exclusively through Velocity. The app has also recently partnered with London’s opulent Park Chinois, along with trendy Miami restaurants Alter, Casa Tua, Estiatorio Milos and Komodo and San Francisco’s Slanted Door and Cala. In Los Angeles, Velocity’s new and noteworthy restaurants include Leona, Boa, Ysabel, Mercado and Scopa Italian Roots.
Sanjan Dhody, Non-Executive Director appointed by DIG Investments commented, “Having been an early investor in Spotify, Palantir and Lyft, the goal is to find world-class companies and assist them in forging global success. Velocity is a game changer for the $3.5 trillion restaurant industry, combining compelling technology, an intimate understanding of hospitality and a world class management team.”
The app, which features instant bookings at a curated selection of the most sought-after restaurants from city to city, has experienced exponential growth with the acquisition of several global restaurant platforms: Cover, the leading dining mobile payments app in the U.S.; Tab Payments, a Canada-based mobile payments app serving Toronto and Montreal; and Uncover, the first restaurant discovery and mobile reservations app in the U.K. These strategic acquisitions have allowed Velocity to offer a fully integrated dining experience, placing the company at the forefront of the world’s largest hospitality market. Since its Series A in Summer 2015, Velocity’s revenue has more than doubled, downloads have risen by 225% on a quarterly basis and its venue roster has increased by 800%.