Contactless Payment Solution Provider ToneTag Raises $78 Million
Contactless payment solution provider ToneTag has successfully raised $78 million in its Series B2 funding round. This investment comprises a mix of primary and secondary capital, primarily led by ValueQuest S.C.A.L.E. Fund along with several co-investors, who have collectively secured over 50% of the total funding. Existing investor Elevate Innovation Partners LLC is also contributing to this round.
This capital boost will empower ToneTag to enhance its customers’ payment experiences and further accelerate its global expansion, as stated in a recent press release.
Based in Bengaluru, ToneTag has completed this new funding round after an extensive period of nearly seven years, distinguishing it as one of the rare startups that managed to secure additional capital following such a lengthy gap.
Product Offerings by ToneTag
Founded by Kumar Abhishek, ToneTag presents three primary product categories aimed at businesses: voice commerce, online store solutions, and in-store solutions, specifically designed for the retail and food & beverage sectors.
Utilizing its Oyeti platform, the company facilitates businesses in integrating voice-powered shopping, ordering, and payment capabilities. Additionally, its VoiceSe UPI payment service enables consumers to perform voice-based transactions even in the absence of an internet connection.
Transaction and Technology Overview
ToneTag processes over 30 million transactions daily via its innovative soundwave technology, ensuring secure payments through sound and offering a reliable solution even without internet access. Major companies like Google and Amazon, alongside prominent Indian banks such as SBI and ICICI, place their trust in ToneTag for their payment solutions.
As per various sources from the data intelligence platform, ToneTag has witnessed an impressive growth in its operational revenue, which surged by 111.7% to Rs 47.78 crore during FY24, compared to Rs 22.57 crore in FY23. Furthermore, the firm has attained profitability for the first time since its establishment in 2014.
ToneTag’s Competitive Landscape
In the realm of contactless payment solution providers, ToneTag faces competition from a range of companies including Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik, among others.