Amazon-backed ToneTag, a voice-based payment solution, has secured $78 million in a Series B2 funding round to fuel the global expansion of its contactless payment innovations, leveraging soundwave technology to drive voice-based payment solutions, achieving a remarkable financial turnaround and strengthening its UPI payment ecosystem worldwide.
Founded in 2013 by Kumar Abhishek, ToneTag has emerged as a leader in contactless payment and voice commerce. Its proprietary soundwave technology enables seamless transactions without requiring an internet connection. The company’s Oyeti platform empowers businesses with voice-powered shopping and ordering. At the same time, its VoiceSe UPI payment service facilitates effortless transactions for consumers.
The investment, led by ValueQuest S.C.A.L.E. Fund and venture capital firm Iron Pillar, will accelerate the company’s expansion across Asia and South America while enhancing operations, marketing, and recruitment efforts. Existing investor Elevate Innovation Partners LLC also participated in the round.
“At ValueQuest, we like backing companies that leverage new technology and commercialize offerings to address real-world challenges,” ValueQuest managing director and head Pushkar Jauhari said.
ToneTag’s Global Expansion Strategy
After a seven-year funding gap, this fresh capital underscores ToneTag’s strong performance and market potential. In FY24, the company reported a 111.7 percent revenue surge, reaching INR 47.78 crore ($5.7 million), a sharp rise from INR 22.57 crore ($2.7 million) in FY23. More notably, ToneTag transitioned to profitability, posting a INR 20.94 crore ($2.5 million) profit—a significant turnaround from the previous year’s INR 6.12 crore ($735,000) loss.
Processing over 30 million daily transactions, ToneTag is redefining contactless payment experiences with its innovative technology. Unlike traditional payment methods, its solutions cater to feature phones and smartphones, making digital transactions accessible to a broader demographic. The company’s clientele includes major players like Google Amazon, and leading Indian banks such as SBI and ICICI.
Iron Pillar partner Ashok Ananthakrishnan said that ToneTag is well-positioned to enhance India’s UPI ecosystem, bridging the gap for millions of users with limited internet access. With this funding, the company aims to strengthen its market hold and revolutionize the contactless payment landscape globally.
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