Digital Payments Firm ToneTag Raises $78 Mn Funding Round

ToneTag, a digital payments startup has raised $78 million in a fresh funding round from stock market veteran Ravi Dharamshi’s private equity fund ValueQuest Scale Fund and venture fund Iron Pillar.

The round also saw participation from existing investor Elevate Capital.

With the new funds, the company plans to expand its operations and enter global markets. It currently has a team of about 90 people.

ToneTag sees growth opportunities in India's digital payments market as more merchants adopt sound-based payments.Currently, QR codes and PoS terminals are the standard payment methods in India.

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The company said the funding includes both primary and secondary capital but did not share details on who sold their shares. In secondary capital, the funds goes to existing investors selling their shares, not the company.

Investors said that ToneTag as a key player in enabling transactions as more devices become smart and connected. Its voice-based payments can also work on platforms like Amazon Echo.

About TangTog

Founded in 2014 by Vivek Singh and Kumar Abhishek, TangTog is a startup that created a sound-based payment system for online and offline transactions. It also provides inventory management for merchants and collaborates with NPCI to support UPI123 Pay, a payment system for feature phones.

ToneTag processes over 30 million interactions daily using its patented soundwave technology for payments. Its customers include global tech giants like Google and Amazon, as well as major Indian banks like SBI and ICICI.

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