Contactless payment innovator ToneTag has landed a fresh $78 million in funding, marking its first major capital infusion in nearly seven years. The Series B2 round, a mix of primary and secondary capital, was led by ValueQuest S.C.A.L.E. Fund and its co-investors, who collectively contributed over half of the total amount. Existing backer Elevate Innovation Partners LLC also participated in the round.
A Strategic Boost for Growth
ToneTag plans to use this funding to transform customer payment experiences and push forward its global expansion. The company, based in Bengaluru, is known for its soundwave-based contactless payment technology, which allows transactions without requiring internet connectivity.
The significance of this investment isn’t just in the amount—it’s the timing. Few startups manage to secure funding after such a long pause, highlighting investor confidence in ToneTag’s business model and market potential.
Products Driving Innovation
Founded by Kumar Abhishek, ToneTag provides businesses with solutions across three categories:
- Voice Commerce: Enables voice-powered shopping and ordering experiences.
- Online Store Solutions: Aiding businesses in integrating seamless payment systems.
- In-Store Solutions: Optimizing retail and F&B payment ecosystems.
The company’s Oyeti platform allows businesses to incorporate voice-driven transactions, while its VoiceSe UPI payment service makes it possible for customers to complete transactions without an internet connection.
Processing Millions of Transactions Daily
ToneTag is already a major player in the digital payments space, processing over 30 million transactions every day through its proprietary soundwave technology. This innovative method has made it a go-to choice for major corporations, including Google and Amazon, as well as leading Indian banks like SBI and ICICI.
By leveraging soundwaves instead of traditional connectivity methods, ToneTag ensures a seamless and secure payment experience, even in regions with limited internet access. This approach has been particularly beneficial in driving financial inclusion in underserved areas.
Revenue Surge and Profitability Milestone
ToneTag’s business has been on a sharp upward trajectory. According to data intelligence platform TheKredible, the company’s revenue from operations jumped 111.7% in FY24, reaching Rs 47.78 crore compared to Rs 22.57 crore in FY23.
More importantly, the firm turned profitable for the first time since its inception in 2014, marking a significant milestone. This financial breakthrough reinforces its strong market positioning and sustainable growth strategy.
Competing in a Crowded Space
ToneTag operates in a fiercely competitive industry, going up against established players like Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik. Each of these companies has carved out its niche, but ToneTag’s soundwave technology gives it a unique edge.
The demand for contactless payments continues to rise, fueled by changing consumer behavior and regulatory support. With its latest funding round and a profitable business model, ToneTag appears well-positioned to scale further and cement its place in the digital payments landscape.
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