Digital payments startup ToneTag raises $78 million in a mix of primary and secondary round

Digital payment startup ToneTag has raised $78 million (about Rs 674 crore) in a Series B2 funding round after nearly seven years without any fresh capital. 

The funding round, which involves both primary and secondary capital, was led by ValueQuest S.C.A.L.E. Fund, with participation from Iron Pillar, Elevate Inflection Capital LLC, and existing investor Elevate Innovation Partners LLC. 

What does ToneTag do?

ToneTag, founded by Kumar Abhishek, offers voice commerce, online store solutions, and in-store solutions for retail and F&B businesses. The startup's Oyeti platform enables businesses to integrate voice-powered shopping, ordering, and payment solutions, while the VoiceSe UPI service facilitates voice-based transactions, even offline.

The Bengaluru-based startup claims to process more than 30 million interactions daily using its patented soundwave technology, which enables secure payments through sound.

It also claims to have clients, including major banks like State Bank of India and ICICI Bank and tech giants like Amazon and Google. 

Plans for global expansion

With the new funds, ToneTag plans to enhance its payment infrastructure, accelerate its entry into international markets, and invest further in research and development. The startup said these efforts will help it revamp the payment experience for consumers in India and abroad. 

Beyond India, ToneTag is eyeing regions like the Gulf Cooperation Council, Southeast Asia, and South America, where it hopes to drive digital payments adoption with its voice-enabled technology.

"This funding round underscores the trust our investors place in our vision and technological capabilities," said Kumar Abhishek, Founder and CEO of ToneTag.

"With this support, we are poised to redefine consumer experiences and drive global expansion. It's not just a milestone for us but also for India's product innovation landscape."