3one4 Capital Exits ToneTag with Strong Returns
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Early-stage venture capital firm 3one4 Capital has announced a successful exit from its investment in Bengaluru-based deeptech startup ToneTag, generating substantial returns. The firm had invested in ToneTag during its pre-Series A round in 2017.
ToneTag, founded in 2013 by Kumar Abhishek and Vivek Singh, provides soundwave-based technology that powers digital payments without requiring additional hardware. Its clients include global names such as Google, Amazon, Airtel, ICICI Bank, SBI, and Yes Bank.
In a statement, 3one4 Capital said, "Our conviction in ToneTag's transformative potential, combined with deep operational involvement, has now translated into a full secondary exit at the same valuation as its USD 78 million Series B2 primary round, delivering exceptional returns."
ToneTag raised INR 674 crore (approximately USD 81 million) in its most recent funding round in February 2025, which included both primary and secondary capital. Other key investors in the company include Amazon, Mastercard, Reliance Capital, and Iron Pillar.
The company's innovative platform supports digital transactions using sound waves, which helps financial institutions extend services without costly infrastructure. ToneTag also offers inventory management tools for merchants and partners with the National Payments Corporation of India (NPCI) to power UPI 123Pay for feature phones.
The company processes 30 million daily interactions across 1.5 million soundboxes and enables in-car payment solutions in 3 lakh vehicles. For FY25, it reported a total payment volume (TPV) of USD 32 billion, with projections to cross USD 54 billion as its enterprise network grows. It also boasts 65% EBITDA margins and 30% profitability.
ToneTag has filed for 32 patents and been granted 22 so far. "This exit marks not just a strong return on investment for 3one4 Capital Fund II, but a milestone that validates the scale of ToneTag's achievement and the strength of our long-term investment approach," the firm added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
31 minutes ago
- Bloomberg
Quadria Is Said to Weigh Stake Sale in $2 Billion Firm Encube
Asian healthcare-focused private equity firm Quadria Capital is considering selling its minority stake in Indian topical pharmaceutical company Encube Ethicals Pvt, people familiar with the matter said. Quadria Capital is discussing with prospective advisers a potential exit from the Mumbai-based company and seeking a valuation of $2 billion for the entire business, the people said, asking not to be identified as the discussions are private. The considerations are preliminary and no final decisions have been made, the people said.
Yahoo
an hour ago
- Yahoo
Researchers make game-changing discovery using bamboo that could revolutionize how we build cars: 'Our composite can be used in various sectors'
This organic material could completely replace plastic in cars. Cars are around 50% plastic — dashboards, door panels, bumpers, steering wheels, and more. Plastic is cheap, sturdy, and long-lasting, so finding a sustainable replacement has been difficult, but researchers at the Indian Institute of Technology in Guwahati have developed a promising alternative. Researchers used Bambusa tulda fibers, a strong, fast-growing bamboo native to the Indian subcontinent, and a bio-based epoxy resin to create a material with "excellent mechanical strength, thermal stability, low moisture absorption, and cost-effectiveness," per India Today NE. Reducing our global reliance on plastic is urgent. Every year, the world produces over 450 million tons of plastic, and less than 10% of it is recycled. The rest ends up in landfills, degrading into microplastics, or as litter, contaminating waterways and harming wildlife. Suppose we continue at this rate of plastic production and consumption. In that case, we can expect more animals to die from plastic ingestion and entanglement, a higher presence of microplastics in our water, food, and bodies, and rising temperatures that cause more frequent extreme weather events. Thankfully, researchers across the globe are working to find sustainable solutions to our plastic problem. Plastic alternatives, like plant-based biopolymers that can completely dissolve in just 10 days, could replace a majority of single-use plastics. New methods of recycling old plastic, like plastic-eating waxworms, can keep plastic out of landfills, oceans, and our bodies. Dr. Poonam Kumari, who led the development team for the bamboo epoxy, believes the material will have a wide range of uses. "Our composite can be used in various sectors, including automotive, electronics, aerospace, and sustainable construction. It is a green replacement for plastic, wood, and even metal components, aligning with the Green Tech Revolution and India's Make in India initiative," Dr. Kumari said, per India Today NE. Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
an hour ago
- Yahoo
India waives customs duty on cotton imports to support textile sector
This waiver includes the elimination of a 5% Basic Customs Duty (BCD), a 5% Agriculture Infrastructure and Development Cess (AIDC), and a 10% Social Welfare Surcharge, which together constituted an 11% import duty on cotton. The Central Board of Indirect Taxes and Customs (CBIC) announced this decision with the expectation that it will reduce input costs throughout the textile value chain, including yarn, fabric, garments, and made-ups. The move is anticipated to provide relief to apparel and textile manufacturers and consumers. The exemption may be an advantage for US cotton producers and support India's clothing sector, which is bracing for tariffs close to 60% on its US exports starting later this month, according to Reuters. The textile industry has been advocating for the removal of import duties on cotton due to escalating domestic prices and supply constraints. The Indian government's decision to waive these duties aims to increase raw cotton availability in the domestic market, stabilise prices to curb inflation on textile products, enhance the export competitiveness of Indian textiles by reducing production costs, and protect small and medium-sized enterprises in the textile sector from price volatility, according to the Ministry of Textiles. This initiative is projected to positively impact domestic cotton prices and fortify the health of India's textile and apparel sector — a vital source of employment and exports. Textile associations have expressed their approval of this measure by the government, which exempts all varieties of cotton from an 11% import duty starting 19 August. Earlier this month (August), US President Donald Trump imposed additional tariffs on Indian products as a response to India's purchase of Russian oil, effectively doubling the total duty to 50% on Indian imports into the US from later this month. Prior to the tariff increase by Trump in April, Indian exports were subject to duties ranging from 0-5%, with some textile products facing tariffs between 9% and 13%, reported the news agency. "India waives customs duty on cotton imports to support textile sector" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
