ToneTag, a contactless payment solutions provider, has secured $78 million in its Series B2 funding round. The investment, a mix of primary and secondary capital, is led by ValueQuest S.C.A.L.E. Fund and its co-investors, who have committed over half of the total amount.

Existing investor Elevate Innovation Partners LLC also participated. This substantial funding will be used to enhance customer payment experiences and accelerate ToneTag's global expansion.

Notably, this is ToneTag's first funding round in nearly seven years, a rare occurrence in the startup ecosystem.

Founded in 2013 by Kumar Abhishek, the Bengaluru-based company offers three product categories: voice commerce, online store solutions, and in-store solutions, catering to the retail and F&B sectors. Its Oyeti platform allows businesses to integrate voice-powered shopping, ordering, and payments. For consumers, the VoiceSe UPI service facilitates voice-based transactions, even without an internet connection.

ToneTag processes over 30 million transactions daily, leveraging its proprietary soundwave technology. This technology enables secure, sound-based payments, offering accessibility even in areas with limited internet connectivity. The company has earned the trust of major players like Google, Amazon, SBI, and ICICI Bank, who utilize ToneTag's solutions.

According to TheKredible, ToneTag experienced significant financial growth in FY24. Its revenue from operations surged by 111.7% to Rs. 47.78 crore, compared to Rs. 22.57 crore in FY23.

Furthermore, the company achieved profitability for the first time since its inception in 2014. In the competitive landscape of contactless payment solutions, ToneTag competes with established players like Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik.