How Much Did ToneTag Raise? Funding & Key Investors

ToneTag has successfully raised funds through multiple rounds, with its latest being a Series B round. The company offers innovative contactless payment solutions using soundwave-based technology.

Keep reading to explore the intricacies of ToneTag's fundraising journey and the investors backing this innovative platform.

What Is ToneTag?

ToneTag, founded in 2014, is a digital payments startup based in Bangalore, Karnataka, India. The company was established by Kumar Abhishek and Vivek Singh.

Specializing in soundwave-based technology, ToneTag offers a mobile payment platform that enables cashless and contactless transactions across various devices. Their solutions include contactless money withdrawals, cashless payments at toll plazas and parking, and mobile payments at railway ticket counters.

With a team of 11-50 employees, ToneTag also provides an inventory management system for merchants and collaborates with the National Payments Corporation of India to power UPI123 Pay, a feature phone-based payment system.

How Much Funding Has ToneTag Raised?

1. Seed Round
   • Amount Raised: $1M
   • Date: August 2015
   • Lead Investors: Reliance Capital, Reliance Venture Asset Management
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To develop and launch their soundwave-based payment technology.
2. Seed Round
   • Amount Raised: Not publicly disclosed
   • Date: November 2016
   • Lead Investors: 3one4 Capital
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand their market reach and improve their technology.
3. Venture Round
   • Amount Raised: $1.3M
   • Date: January 2018
   • Lead Investors: Tropical Star Limited
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations and enhance product offerings.
4. Corporate Round
   • Amount Raised: $8M
   • Date: May 2018
   • Lead Investors: Amazon
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To leverage strategic partnerships and expand their technological capabilities.
5. Series B
   • Amount Raised: $78M
   • Date: February 2025
   • Lead Investors: Iron Pillar, ValueQuest Investment Advisiors
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations, advance R&D, recruit talent, enhance marketing, and expand into new markets.
6. Secondary Market
   • Amount Raised: Not publicly disclosed
   • Date: February 2025
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To provide liquidity to early investors and employees.

Total Amount Raised: $88.3M

Current Valuation: Not publicly disclosed

Key Investors

• Iron Pillar
  • Details: Iron Pillar is a venture growth investor focused on mid-stage technology companies in India. They aim to support companies that are scaling rapidly and have the potential to become market leaders.
  • Investment Focus Areas: Technology, mid-stage companies, India.
  • Notable Investments: Not publicly disclosed.
• ValueQuest Investment Advisors
  • Details: ValueQuest Investment Advisors is an investment advisory firm that focuses on long-term investments in Indian companies. They aim to identify and invest in high-quality businesses with sustainable growth potential.
  • Investment Focus Areas: Long-term investments, Indian companies, high-quality businesses.
  • Notable Investments: Not publicly disclosed.
• Amazon
  • Details: Amazon is a global e-commerce and cloud computing giant. They have a diverse portfolio of investments across various sectors, including technology and logistics.
  • Investment Focus Areas: E-commerce, cloud computing, technology.
  • Notable Investments: Not publicly disclosed.
• 3one4 Capital
  • Details: 3one4 Capital is an early-stage venture capital firm based in India. They focus on investing in technology startups that have the potential to disrupt traditional industries.
  • Investment Focus Areas: Early-stage technology startups, disruptive technologies, India.
  • Notable Investments: Not publicly disclosed.
• Reliance Capital
  • Details: Reliance Capital is a part of the Reliance Group and is involved in financial services. They offer a wide range of financial products and services, including asset management and insurance.
  • Investment Focus Areas: Financial services, asset management, insurance.
  • Notable Investments: Not publicly disclosed.

What's Next for ToneTag?

With a fresh infusion of $78 million, ToneTag is poised to scale its operations and expand into new markets across Asia, South America, and the Middle East. The company aims to leverage its patented soundwave technology to enhance customer payment experiences and deepen the UPI user base.

Future fundraising opportunities seem promising, given the successful Series B2 round and the company's ambitious growth plans. However, ToneTag may face challenges such as competition in the digital payment market and regulatory hurdles in new regions.

Use Clay to Get Funding Data

Sales professionals, take advantage of Clay's platform to access comprehensive fundraising data on companies like ToneTag and gather other critical business insights. Sign up for free and start leveraging these powerful tools today.