Indian payments startup ToneTag nets $78m in Series B2

By Gloria Methri

ToneTag, India’s voice-based payment and commerce solutions provider, has attracted an investment of INR 674 crores ($78m) in its Series B2 funding round.

The funding is a combination of primary and secondary capital co-led by ValueQuest Scale Fund and Iron Pillar, along with participation from existing investor Elevate Capital. This investment will enable ToneTag to revamp customers’ payment experiences and accelerate its global expansion.

With over 30 million interactions per day, ToneTag is leveraging its patented soundwave protocol to deliver a seamless solution to its customers. Its stability at this scale highlights India’s prowess in creating globally competitive product companies. ToneTag counts global tech giants and Indian banks amongst its customers in a B2B SaaS offering.

The funds raised will be directed toward scaling operations, advancing R&D efforts, recruiting quality talent, and enhancing marketing initiatives. ToneTag is also setting its sights on new markets in Asia, South America and the Middle East to bring its solutions to a wider audience.

Pushkar Jauhari, MD & Head of Private Equity at ValueQuest said, “India’s digital payment landscape has been growing rapidly, and we are excited to partner with ToneTag. ToneTag’s innovative voice-based technology coupled with regulatory and customer validation positions it well to capture market opportunity. At ValueQuest, we like backing companies that leverage new technology and commercialize offerings to address real-world challenges.”

Kumar Abhishek, Founder and CEO of ToneTag, said, “This funding round is a testament to the trust our investors have in our vision and technology prowess. With their support, we are ready to take the next big leap of bringing awe-inspiring experiences into the hands of consumers and expanding our solutions globally. This is not just a milestone for ToneTag but for India’s product innovation landscape.”