PaymentTech Startup ToneTag Raises $78 Mn in a Round Led by Valuequest S.C.A.L.E. Fund and Others

Naffa Innovations Pvt. Ltd. (ToneTag), India’s leading voice-based payment and commerce solutions provider, has attracted an investment of INR 674 crores in its Series B2 funding round. The funding is a combination of primary and secondary capital and is led by ValueQuest S.C.A.L.E. Fund and its co-investors who have committed over 50% of the round, Iron Pillar, Elevate Inflection Capital LLC. Existing investor Elevate Innovation Partners LLC are also participating in this round. This investment will enable ToneTag to revamp customers payment experiences and accelerate its global expansion.

Kumar Abhishek, Founder and CEO of ToneTag

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 leading Indian Banks amongst its customers in a B2B SaaS offering.

The company’s commitment to innovation has earned the trust of leading investors and partners. 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 transformative solutions to a wider audience.

Pushkar Jauhari, MD & Head of Private Equity at ValueQuest commented, “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.”

Adding to this, Ashok Ananthakrishnan, Partner of Iron Pillar said, “We have been tracking ToneTag since 2017 and are excited to see the progress made by the company in terms of its marquee customer base, growth and profitability of the business. We are delighted to partner ToneTag in its next phase of growth in the payment infrastructure ecosystem. We believe ToneTag can play a crucial role in deepening and widening the UPI user base in both feature and non-feature phones in India. Iron Pillar is also keen on partnering ToneTag in its foray into newer markets such as GCC, SouthEast Asia and South America”

Sridhar Chityala of Elevate Inflection Capital LLC and Elevate Innovation Partners LLC said, “ToneTag by Naffa innovations represents one of the most revolutionary and innovative transformation programs in the payments industry. Powered by patented Soundwave communication protocols for device-to-device engagement operating on Mobile infrastructure, democratization of payments is now a reality. ToneTag service is unique that it operates both under digital and analog protocols. Thanks to India for the UPI payment protocol that it has dedicated to the industry, digitiazation of payments is skyrocketing in India. An outstanding team, client base, and well backed investor base, we are proud to be a part of this company since 2017”

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 in the hands of consumers and expanding our solutions globally. This is not just a milestone for ToneTag but for India’s product innovation landscape.”

With a firm foundation and ambitious vision, ToneTag continues to set benchmarks in the payment technology space, paving the way for secure, scalable, and transformative commerce solutions worldwide. This round was orchestrated by Nitish Aggarwal and Anu Aggarwal from Investment banking firm Probhus Ventures , operationally supported by Girish Kaushik and Suman Bajoria from JAA Associates and legal consultants from Lex Connect Consulting

Sound-based PaymentTech Co. ToneTag Launches Payments through Connected Cars and Conversational Payments

ToneTag breaks new grounds in Fintech: Connected car payments and Conversational payments on UPI take center stage

ToneTag, India's fastest-growing wireless sound-based payment service provider, launched two groundbreaking technologies simultaneously at the Global Fintech Fest 2023. These innovations are poised to redefine digital payments and offer unparalleled convenience on a global scale.

ToneTag, renowned for its pioneering work in the fintech sector, continues to set new benchmarks in technological innovation. The company proudly presents its dual technological advancements as follows:

Payments through Connected Cars: Transforming the Way We Pay

ToneTag has unveiled a revolutionary solution for connected cars, setting a new standard in seamless transactions. Users can now make UPI payments directly from their car's infotainment system, eliminating the need for smartphones or wallets during transactions. ToneTag proudly stands as the world's first company to enable UPI payments through car infotainment systems, marking a significant milestone in the world of fintech.

This innovative technology is poised to redefine how payments are made, offering unparalleled convenience to connected car users. Whether it's fueling up at the gas station, paying tolls, or settling utility bills, ToneTag's solution streamlines the entire payment process, enhancing the overall journey for users.

Conversational Payments on UPI: Pay with Just Your Voice

ToneTag is excited to announce its partnership with NPCI to introduce Conversational Payments on UPI. This groundbreaking service allows users to make UPI payments using nothing but their voice. Whether it's transferring funds, settling mobile bills, paying for electricity or piped gas, or even booking LPG gas cylinders, it's now as simple as speaking.

Currently available in Hindi and English, ToneTag's Conversational Payments will soon be accessible in many regional languages. The technology is built on five robust pillars: Acoustics, language understanding, text-to-number conversion for seamless transactions, binary intent comprehension for precise actions, and text-to-speech capabilities for effortless communication.

ToneTag's simultaneous introduction of these two groundbreaking technologies represents a quantum leap forward in the fintech landscape. By simplifying and enhancing digital payments, the company envisions a future where cashless transactions are universally accessible and user-friendly.

About ToneTag:

Operating at the intersection of technology and customer-focused innovation, ToneTag is a global technology solutions provider. It offers sound-based contactless payments, location- based services, and proximity-based customer engagement services, amongst others. Since its inception in 2013, ToneTag has filed 13 global patents for a variety of exciting use cases in the payments ecosystem and the offline retail space and has touched the lives of its over 50 million global consumers. Evolving from a need to create more accessible and hardware-agnostic payment systems, ToneTag is the first company to have enabled contactless payment acceptance on Electronic Data Capture (EDC) machines using sound.

ToneTag enables cashless, digital payments from cards and e-wallets from feature phones without the use of the internet, meaning that it operates with minimal to zero hardware dependency. The technology can enable payments through any device – laptops, PCs, tablets, EDCs, mPOS, smartphones, and so on. Its SDK can be used for online and offline retail, paying for parking, toll, buses, or for making in-flight payments. This combination allows customers from all walks of life to enjoy a seamless payment process that is as convenient, frictionless, and interoperable as the use of cash – a consequence of the company’s vision to improve the quality of life globally through inventing experiences and technology Innovation.

Sound Waves-based Payment Startup Tonetag Raises $10 Mn from Amazon, Mastercard

Bangalore-based Naffa Innovations Pvt. Ltd, which operates digital payments startup ToneTag, has raised $8-10 million from a clutch of marquee, strategic investors led by Amazon Inc. and Mastercard, reported LiveMint, citing three people directly aware of the development.

ToneTag’s existing investors include Manipal Global Education chairman Mohandas Pai, PremjiInvest’s chief investment officer T.K. Kurien and Facebook executive Anand Chandrasekaran. The start-up is also in talks with other strategic investors, said the people, requesting anonymity.

Founded in 2013 by Kumar Abhishek and Vivek Singh, ToneTag is a fintech and retail solutions company, which uses encrypted sound waves to make offline, proximity-based contact-less payments on any device. The company uses proprietary Software Development Kit that encodes data into sounds. These sounds are transmitted over air and can enable payments over the existing payments infrastructure.

The startup enables contact-less digital transactions on mobile phones, card swiping machines, automated teller machines and other payment-enabling devices.

The startup had earlier raised $1.3 million from Tropical Star Limited, in January this year. Prior to which, it had raised undisclosed amount from Arun Seth, a trustee of the NASSCOM foundation, Mohandas Pai, and Anand Chandrasekaran, a former Chief Product Officer of Snapdeal, among others, in November 2016.

In 2015, the startup raised $1 million from the venture capital arm of Reliance Capital Ltd., Reliance Venture Asset Management.

ToneTag has till date raised more than $2.3 Million from three rounds of investment.

The startup was part of iSpirt's InTech50 2016 batch,

ToneTag, which already has an existing partnership with Mastercard, is in the process of integrating its technology, which uses sound waves to transfer data, with the Amazon platform.

The company facilitates on-delivery payments and peer-to-peer transactions, and works with over 300,000 merchants, including Fabindia and Shell petrol pumps, among others.

It has also forged alliances with a number of leading banks and digital wallets, including HDFC Bank Ltd, ICICI Bank Ltd, YES Bank, Freecharge and Airtel. The companies have integrated their digital applications with ToneTag’s software.

Amazon’s and Mastercard’s bet on ToneTag comes at a time when Google is aggressively pumping money into start-ups and technologies that support Google Assist.

Globally, experts tracking the payments space are expecting sound waves to emerge as the next big thing. California, US-based audio and speech recognition company SoundHound, which uses similar technology, had recently raised $100 million from strategic investors led by China’s Tencent Holdings and Hyundai.

The transaction marks Amazon’s third major venture investment in India in the past six months. It had also bet on online insurance start-up Acko and digital lending start-up Capital Float.

Amazon’s investment in ToneTag also comes at a time when the US based e-commerce giant is doubling down on its digital payments business globally, especially in strategically important countries such as India, where it has already committed to spend at least $5 billion.

Just two days back, Amazon has led a $12 million funding round in Acko Technologies, which is a Insurtech startup headquartered in Mumbai. Prior to this, in last month, Amazon had invested $22 million in Capital Float, a Bengaluru headquartered digital lending startup.

According to recent regulatory filings with the ministry of corporate affairs, Amazon India is preparing to increase its investment in its payments arm by at least five times. It has also increased its authorised capital for Amazon Pay India Pvt. Ltd to Rs2,000 crore ($305 million) from Rs400 crore.

Sound Waves-based Payment Startup Tonetag Raises $10 Mn from Amazon, Mastercard

Bangalore-based Naffa Innovations Pvt. Ltd, which operates digital payments startup ToneTag, has raised $8-10 million from a clutch of marquee, strategic investors led by Amazon Inc. and Mastercard, reported LiveMint, citing three people directly aware of the development.

ToneTag’s existing investors include Manipal Global Education chairman Mohandas Pai, PremjiInvest’s chief investment officer T.K. Kurien and Facebook executive Anand Chandrasekaran. The start-up is also in talks with other strategic investors, said the people, requesting anonymity.

Founded in 2013 by Kumar Abhishek and Vivek Singh, ToneTag is a fintech and retail solutions company, which uses encrypted sound waves to make offline, proximity-based contact-less payments on any device. The company uses proprietary Software Development Kit that encodes data into sounds. These sounds are transmitted over air and can enable payments over the existing payments infrastructure.

The startup enables contact-less digital transactions on mobile phones, card swiping machines, automated teller machines and other payment-enabling devices.

The startup had earlier raised $1.3 million from Tropical Star Limited, in January this year. Prior to which, it had raised undisclosed amount from Arun Seth, a trustee of the NASSCOM foundation, Mohandas Pai, and Anand Chandrasekaran, a former Chief Product Officer of Snapdeal, among others, in November 2016.

In 2015, the startup raised $1 million from the venture capital arm of Reliance Capital Ltd., Reliance Venture Asset Management.

ToneTag has till date raised more than $2.3 Million from three rounds of investment.

The startup was part of iSpirt's InTech50 2016 batch,

ToneTag, which already has an existing partnership with Mastercard, is in the process of integrating its technology, which uses sound waves to transfer data, with the Amazon platform.

The company facilitates on-delivery payments and peer-to-peer transactions, and works with over 300,000 merchants, including Fabindia and Shell petrol pumps, among others.

It has also forged alliances with a number of leading banks and digital wallets, including HDFC Bank Ltd, ICICI Bank Ltd, YES Bank, Freecharge and Airtel. The companies have integrated their digital applications with ToneTag’s software.

Amazon’s and Mastercard’s bet on ToneTag comes at a time when Google is aggressively pumping money into start-ups and technologies that support Google Assist.

Globally, experts tracking the payments space are expecting sound waves to emerge as the next big thing. California, US-based audio and speech recognition company SoundHound, which uses similar technology, had recently raised $100 million from strategic investors led by China’s Tencent Holdings and Hyundai.

The transaction marks Amazon’s third major venture investment in India in the past six months. It had also bet on online insurance start-up Acko and digital lending start-up Capital Float.

Amazon’s investment in ToneTag also comes at a time when the US based e-commerce giant is doubling down on its digital payments business globally, especially in strategically important countries such as India, where it has already committed to spend at least $5 billion.

Just two days back, Amazon has led a $12 million funding round in Acko Technologies, which is a Insurtech startup headquartered in Mumbai. Prior to this, in last month, Amazon had invested $22 million in Capital Float, a Bengaluru headquartered digital lending startup.

According to recent regulatory filings with the ministry of corporate affairs, Amazon India is preparing to increase its investment in its payments arm by at least five times. It has also increased its authorised capital for Amazon Pay India Pvt. Ltd to Rs2,000 crore ($305 million) from Rs400 crore.

Payment Solutions Startups ToneTag Raises Funding from Arun Seth, T.V. Mohandas Pai, Others

ToneTag, a sound-based proximity payment company, is pleased to announce a round of strategic funding, which brings on board, a group of technology evangelists and digital payment crusaders.

Arun Seth is a trustee of the NASSCOM foundation, independent Board member at Narayan Hrudalaya, independent director, Jubilant Food Works, advisory board member at The Energy & Resources Institute (TERI) and governing board member of HelpAge India. Mr. Seth has also served as Chairman, Alcatel-Lucent India ltd and Chairman at BT (India) Private Limited.

T.V. Mohandas Pai is the Chairman of Manipal Global Education. He used to be a Member of the board of directors of Infosys, and Head – Administration, Education and Research, Financial, Human Resources, and Infosys Leadership Institute.

Anand Chandrasekaran was the Chief Product Officer of Snapdeal, one of India's pre-eminent Internet companies as well as Chief Product Officer of Bharti Airtel, the third largest mobile operator in the world.

Deepak Ghaisas is the chairman of Gencoval Strategic Services Pvt Ltd. Previously he was the CEO - India Operations and CFO of I-flex Solutions Ltd., India.

T K Kurien is the Executive Vice Chairman, Wipro Limited. TK is also a member of the Wipro Corporate Executive Council.

ToneTag is a sound based proximity communication provider that enables contactless proximity payments, proximity communication, location based services and customer engagement services among a multitude of other solutions. It is a product first company that started off to promote financial inclusion through accessible solutions that bridge the last mile in digital payments. By working closely with banks, retailers, payment providers and other stakeholders in the commerce and payment ecosystem, the company is solving real problems that are affecting various industries.

This announcement has been welcomed by Kumar Abhishek, Founder & CEO, ToneTag who said, "ToneTag is creating a payment ecosystem for the country that is completely digital, free from the clutches of cash. It enables an inclusive financial environment for the masses. ToneTag with its unique experience, a range of use cases and a strong partner network is striving to push India into a brighter digital era. Mohandas Pai, Arun, Deepak, Anand and T K have transformed several businesses with their proficiency and experience. Their association with ToneTag, brings valuable know-how and will be an asset to the core team. Their individual and collaborative expertise will be instrumental in defining innovative solutions for our technology and give consumers access to many unique digital experiences, through various channels, that were previously not feasible.”

Pranav Pai, on behalf of Mohandas Pai via 3one4 Capital, had this to say, "The ToneTag team have combined their deep insights of the financial and banking systems in India with core technology innovations to solve a long-standing challenge through a disruptive yet simple set of modalities. With the radical economic reforms that are being rolled out, technology like ToneTag's will be a natural enabler of India's shift into a new information infrastructure. By accounting for multiple channels of contactless proximity payments, including environments where data connections are unavailable, ToneTag is truly optimizing for simplicity and designing for a seamless and delightful experience with every transaction. The team is also hyper-aware of the balance to be preserved between issuers and merchants, and has converged upon an inter-operable and platform-agnostic solution. We are tremendously excited by the possibilities of the ToneTag tech stack, and we are looking forward to working with them to scale this vital value proposition."

Arun Seth had this to say about ToneTag, "Yesterday's announcement on large currency notes is another indicator of the government’s drive towards a cashless economy. ToneTag is right at the centre of this change, as it helps customers make contactless payments, that are easier, faster and more secure than paying by cash or cards.

ToneTag technology plays to the natural power of the phone to generate and receive audio signals. As a result, ToneTag payments can be made on smart phones as well as feature phones, the latter being critical for financial inclusion. Also, ToneTag does not need NFC compatible hardware or QR codes to be scanned. ToneTag is fully compatible with existing financial infrastructure like credit card machines and ATM's so it has universal use and will help drive India to a cashless and cardless economy"

ToneTag has partnered with major players in the areas of mobile wallets and banking to enable contactless digital transactions on mobile phones, card swiping machines, ATMs and all other acceptance enabling devices. It is completely hardware and platform independent and works via the transmission of sound waves, alone. It requires no special hardware to be deployed.

YES BANK Partners With ToneTag for Sound Based Payments on YES PAY Digital Wallet

YES BANK, India’s fifth largest private sector bank has tied up with ToneTag, a proximity communication company to integrate and deploy ToneTag sound based contactless payments on their mobile wallet YES PAY. The technology will allow YES PAY wallet users to make ‘cardless’ payments at merchant outlets through their mobile phone. The live demonstration of Yes Pay app using ToneTag Sound wave technology , was showcased at Nasscom Product Conclave 2016 in Bengaluru yesterday.

YES PAY wallet is YES BANK’s digital wallet that enables social media and smartphone users to send and receive money, split bills, budget, recharge mobile or DTH subscriptions, make utility bill payments and shop online. Any smartphone user can download the wallet app and register seamlessly ToneTag is a technology that enables sound based communication. The Software Development Kit (SDK) only requires a speaker and a microphone to work. It can utilize the in-built mic or speaker of any device to enable data transfer through soundwaves and hence it supports most existing devices such as PCs, POS, EDC devices and mobile phones including feature phones and wearables.

Since the ToneTag patented Software Development Kit (SDK) supports any hardware, the only prerequisite is the integration of the ToneTag SDK at both merchant (POS or Mobile devices) and customer interaction points (Mobile apps). The SDK contains features such as patented noise filters, three levels of encryption, tokenization, white box cryptography and multifactor authentication to ensure security and reliability.

Payments through ToneTag allow businesses to streamline their checkout process by providing a seamless transaction experience for both the customer and the retailers. ToneTag delivers unparalleled convenience to the customer as one can pay in-app at any physical location with just a click of a button.
Since the technology is software only, and can be deployed very easily as an app download or update.It further advances ToneTag drive to reduce cash usage and promote a better payment experience for all.

Ritesh Pai, Senior President & Country Head– Digital Banking at YES BANK, said – “Contactless payments based on sound tones is something we haven’t seen before and is a very interesting concept brought forth by ToneTag. As IoT sees greater investment, consumers will become increasingly reliant on contactless payments , ToneTag is our bet at making YES PAY Wallet future-ready. We are bullish about our alliance with them as we continue to strive in making payments seamless for end users.”

He further added, “YES PAY Wallet is an innovative product for smartphone users with features such as social media integration pushing the digital divide. ToneTag is thrilled about the partnership with YES BANK to provide their users with our payment technology.”

“With ToneTag, YES Pay Wallet users can enjoy an NFC like payments experience without the associated hardware dependencies, which is a significant improvement over current technologies such as QR codes that are being used in the market for in-store payments,” said Kumar Abhishek, CEO, ToneTag, in a statement.