ToneTag, a Bengaluru-based startup, has raised $78 million (Rs 674 crore) in a new funding round led by ValueQuest S.C.A.L.E. Fund, along with Iron Pillar and Elevate Capital. The company provides voice-based payment and commerce solutions, enabling businesses to offer shopping, ordering, and payment through voice commands.
Its VoiceSe UPI service allows transactions without internet access. With over 30 million interactions daily, ToneTag works with major banks and companies like Google and Amazon. The funds will help expand its services in India and globally, focusing on markets in Asia and South America.
What is ToneTag?
ToneTag is a Bengaluru-based fintech startup that provides voice-based payment and commerce solutions. It enables businesses to integrate shopping, ordering, and payment using voice technology through its Oyeti platform.
One of its key products is VoiceSe UPI, which allows users to make payments without needing the internet. ToneTag’s technology uses soundwave-based communication to securely process transactions.
The company handles over 30 million interactions daily and is trusted by major banks like SBI and ICICI, as well as tech giants like Amazon and Google. It is expanding its services globally, including in Asia and South America.
Why is This Funding Significant?
The $78 million funding is a major milestone for ToneTag, marking its first significant capital raise in nearly seven years. This investment will support the company’s global expansion, with plans to enter markets in Southeast Asia and South America, where voice-based digital payments are gaining popularity.
The funding also enables technological advancements, allowing ToneTag to enhance its voice commerce and payment solutions, making transactions more seamless and accessible. Notably, the funding comes at a time when the company has turned profitable in FY24, reporting a Rs 20.94 crore profit after a previous loss, with revenue surging 111.7%.
This growth reflects the company’s strong business model and market potential. Additionally, ToneTag’s soundwave technology plays a crucial role in expanding UPI accessibility, especially for users with feature phones or limited internet access.
The investment from ValueQuest, Iron Pillar, and Elevate Capital highlights strong investor confidence in ToneTag’s potential to reshape contactless and voice-based payments, positioning it as a key competitor to Paytm, PhonePe, and BharatPe in India’s growing fintech space.
How Will the Funds Be Used?
The $78 million funding will be used to expand and strengthen ToneTag’s business in several key areas. A major portion will go toward scaling operations, including hiring new talent and enhancing infrastructure to support its growing customer base. The company also plans to boost marketing efforts to increase awareness and adoption of its voice-based payment solutions.
A key focus will be on global expansion, particularly in Asia and South America, where digital payments are rapidly growing. Additionally, the funds will help improve ToneTag’s technology, refining its voice commerce and soundwave-based payment systems to make transactions even more seamless and secure.
By investing in research and development, ToneTag aims to stay ahead of competitors like Paytm, PhonePe, and BharatPe, while further integrating voice-enabled payments into India’s digital economy.
These insights reflect the founders’ commitment to leveraging innovative technology to address real-world challenges in commerce and payments.
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Key Takeaways
- Major Funding After 7 Years – ToneTag raised $78 million in a fresh funding round led by ValueQuest, Iron Pillar, and Elevate Capital, marking its first capital infusion in nearly seven years.
- Strong Business Growth – The company turned profitable in FY24, reporting a Rs 20.94 crore profit after a previous Rs 6.12 crore loss, while revenue surged 111.7% to Rs 47.78 crore.
- Expansion Plans – The funds will help scale operations, recruit talent, enhance marketing, and expand into Asia and South America, where digital payments are booming.
- Innovative Technology – ToneTag’s soundwave-based payment system allows secure transactions without internet access, benefiting feature phone users and boosting UPI adoption.
- Industry Impact – Competing with Paytm, PhonePe, and BharatPe, ToneTag is well-positioned to drive contactless and voice-enabled payments, making digital transactions more accessible.
Conclusion
ToneTag’s $78 million funding marks a major milestone in its journey, reflecting strong investor confidence and its growing impact on voice-based digital payments. With soundwave technology, the company is making transactions more accessible, even without the Internet, benefiting businesses and consumers alike. Its rapid revenue growth and profitability further highlight its success.
Looking ahead, ToneTag plans to expand globally, targeting Asia and South America, while continuing to innovate and enhance its technology. As digital payments evolve, ToneTag is well-positioned to lead the voice commerce revolution, bridging the gap between traditional and modern payment systems worldwide.
