3one4 Capital Exits ToneTag with Strong Returns
The firm had invested in ToneTag during its pre-Series A round in 2017.
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
Yahoo
2 hours ago
- Yahoo
MakeMyTrip closes $1.25bn offering of convertible senior notes due 2030
Online travel company MakeMyTrip has closed its offering of $1.25bn in convertible senior notes due 2030. The business also announced the full exercise of the option to purchase an additional $187.5m of the notes, culminating in a significant funding exercise for the company. It has also completed a public offering of 16 million ordinary shares at $90 each, with underwriters fully exercising their option to acquire an additional 2.4 million shares. After accounting for discounts and estimated expenses, MakeMyTrip received net proceeds of approximately $1.41bn from the notes offering. The net proceeds from both the notes offering and the equity offering are earmarked for the repurchase of Class B ordinary shares from Group. The notes, which are senior unsecured obligations, will be convertible into ordinary shares of MakeMyTrip at the holders' discretion, at a rate of 8.2305 shares per $1,000 principal amount. This conversion rate is subject to adjustments based on specific conditions. MakeMyTrip has set a conversion premium of around 35% above the public offering price of the ordinary shares. The company retains the right to redeem the notes for cash after 10 July 2028, under certain conditions, including the tradability of the notes and the company's share price performance. Additionally, a 'Cleanup Redemption' can be initiated if less than 10% of the aggregate principal number of notes remains outstanding. Holders of the notes are granted the right to compel the company to repurchase their notes for cash on 3 July 2028, or upon the occurrence of a fundamental change, under specific terms. "MakeMyTrip closes $1.25bn offering of convertible senior notes due 2030" was originally created and published by Hotel Management Network, 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. Sign in to access your portfolio
Forbes
2 hours ago
- Forbes
Fear Costco At $980?
CHONGQING, CHINA - MAY 25: In this photo illustration, the logo of Costco Wholesale Corporation is ... More displayed on a smartphone screen, with the latest stock market chart of the company in the background, reflecting investor sentiment and recent trading activity, on May 25, 2025, in Chongqing, China. (Photo Illustration by) Note: Costco FY'24 concluded on September 1, 2024. Costco's (NASDAQ: COST) shares have experienced significant growth, increasing by 40% in 2024 (calendar year) and tacking on another 7% so far in 2025, easily surpassing the S&P 500's 2% increase. What's fueling this momentum? Robust performance supported by its membership model. In fiscal Q3 2025 (which ended on May 11), Costco generated $63.2 billion in revenue and $2.5 billion in operating profit. Of that amount, $1.2 billion was derived from membership fees alone—accounting for nearly half of the operating profit, and primarily recurring. With inflation putting pressure on household budgets, Costco's value-oriented model is resonating well with consumers. In May 2025, sales experienced a year-over-year increase of 7%—more than twice the 3% growth across the broader U.S. retail industry. At first glance, it seems like a retail paradise. However, here's the drawback: Costco is trading at 55 times earnings and 59 times free cash flow, resulting in a meager 1.7% cash flow yield. For perspective, Amazon (NASDAQ: AMZN), which enjoys faster top-line growth and exposure to high-margin sectors like cloud and advertising, trades at a lower multiple. While Costco may claim scale, strategic position, and market affection, it comes at a hefty cost. Refer to Buy or Sell Costco Stock? Costco's valuation assumes perfection, and even a minor deceleration could lead to turbulence. To put it in perspective, this stock is not immune to volatility. Shares plummeted nearly 49% during the 2008 financial crisis, 20% during the Covid-19 crisis in early 2020, and 32% during the inflation-driven pullback of 2022. Investors should remain aware of that history, even as the current fundamentals appear strong. What's Causing the Premium? Costco's high valuation is based on its consistently strong performance. In fiscal Q3 2025, the company achieved earnings per share of $4.28, reflecting a 13% year-over-year increase, on $63.21 billion in revenue, an 8% rise. Comparable-store sales increased by 8% year-over-year, while e-commerce grew by nearly 15%, excluding fuel and currency impacts. Membership renewal rates remained exceptional, at 92.7% in the U.S. and Canada, and 90.2% globally, with total household memberships rising by 6.6%. In the latest quarter, Costco's U.S. same-store sales surpassed Walmart's (NYSE: WMT) 4.5% and significantly outperformed Target's (NYSE: TGT) 3.8% decline, highlighting the warehouse model's attractiveness to value-oriented shoppers. The company's high-margin, recurring membership revenue has shown remarkable resilience during economic hardships, contributing to the stock's recent surge. Operating 905 warehouses worldwide, including 624 in the U.S., Costco leverages its pricing advantage through extremely thin margins and the efficacy of its private-label brand, Kirkland Signature. In Q3, shopping frequency increased by 5.2%, while the average transaction size only rose by 0.4%, showing that foot traffic—not price inflation—is driving the growth. Costco's adaptable supply chain has allowed it to manage increasing tariffs by redirecting shipments and altering sourcing strategies. With two-thirds of its merchandise sourced domestically and merely 8% of U.S. sales connected to China, its exposure to trade risks is limited. The company is also localizing Kirkland production and experiencing steady demand for essentials such as groceries and fuel. Its scale enhances pricing power, which is vital for maintaining its premium valuation. Exceptional Business, Elevated Valuation Costco continues to be a premier operator, but its high valuation seems detached from its fundamentals. Revenue growth is solid, yet not explosive, lingering in the low teens. Store expansion has slowed—less than 3% for this fiscal year—and some new locations may eat into existing sales, indicating a maturing presence. The current premium assumes that elevated growth will persist. If comparable sales trend towards mid-single digits, investor confidence—and Costco's valuation multiple—could come under pressure. Investing in a single stock carries inherent risks. In contrast, the Trefis High Quality (HQ) Portfolio, which consists of 30 stocks, has a history of comfortably outperforming the S&P 500 over the last four-year period. Why is that? As a collective, HQ Portfolio stocks have provided superior returns with reduced risk compared to the benchmark index, resulting in less volatile performance as demonstrated in HQ Portfolio performance metrics.
Entrepreneur
2 hours ago
- Entrepreneur
Group's Governance Is of Global Standards: Gautam Adani Confronts Crisis; Highlights Record-Breaking Revenue
He asserted that the Group's governance "is of global standards" and that its compliance frameworks "are non-negotiable." You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Gautam Adani, in a solemn yet determined manner, confronted the past year's turbulence head-on, acknowledging both national grief and corporate challenges while reaffirming a sweeping vision for India's future. Beyond the emotion, Adani addressed the crisis that directly hit the Adani Group last year. Allegations from the U.S. Department of Justice and the SEC regarding Adani Green Energy cast a shadow on the conglomerate. Adani stated unequivocally at the Adani Group's Annual General Meeting 2025, "No one from the Adani Group has been charged with violating the FCPA or conspiring to obstruct justice… We live in a world where negativity often echoes louder than the truth." He asserted that the Group's governance "is of global standards" and that its compliance frameworks "are non-negotiable." Despite the controversy, he pointed to a year of "record-breaking revenue, unprecedented growth, and historic profitability." Backing that assertion, Adani Enterprises reported a sharp jump in its consolidated net profit for the fourth quarter of FY25, posting INR 3,845 crore, an increase of 753 per cent from the INR 451 crore reported in the same period a year earlier. The surge was largely due to a gain of INR 3,286 crore, as detailed in the company's stock exchange filing. This marked a strong rebound from the previous quarter, when net profit had slumped to INR 58 crore amid weakness in the coal trading segment. Revenue from operations for the January–March quarter stood at INR 26,966 crore, down 8 per cent year-on-year, but up 18 per cent sequentially. For the full year ending March 31, 2025, Adani Enterprises delivered a 119 per cent increase in consolidated net profit at INR 7,099 crore, with annual revenue rising modestly to INR 97,895 crore. Expenses grew slightly to INR 93,832 crore. But Adani emphasized this was not just about numbers. "We do not just build businesses—we build India's capabilities," he said. Citing the conglomerate's expansion across sectors from power and ports to data centers and defense, Adani outlined an ambitious path forward. Adani Power crossed 100 billion units of generation, while Adani Green is building what he described as "the world's largest renewable energy park," targeting 50 GW by 2030. Combined, the group expects to hit 100 GW across thermal, renewable, and pumped hydro by the same year. Adani Energy Solutions secured INR 44,000 crore in transmission orders and is executing smart metering projects worth INR 13,600 crore. In natural resources, the group produced a record 47 million tons of coal and iron ore and is targeting over 30 per cent growth by FY26. Infrastructure also featured heavily. Adani Ports handled 450 million metric tons of cargo, and Navi Mumbai International Airport, slated to open later this year, will offer a starting capacity of 20 million passengers—eventually scaling to 90 million. One of the more socially driven parts of the speech addressed the transformation of Dharavi. Calling it "India's most ambitious urban rehabilitation project," Adani said over one million people would be moved into "townships that will feature spacious layouts, dual toilets, open spaces, schools, hospitals, transit hubs, and parks." Adani also shared progress on philanthropic initiatives. A INR 60,000 crore family pledge is funding healthcare, education, and skilling. Two "Adani Healthcare Temples"—1,000-bed campuses in Ahmedabad and Mumbai—are in development, in partnership with Mayo Clinic. Additionally, INR 2,000 crore has been committed to a world-class skill university in Mundra. In closing, Adani reframed the group's legacy not as a collection of assets, but as a measure of conviction: "We are not laying concrete—we are laying convictions, highways that carry ambition, ports that ship hope, and grids that light up futures." Ending his speech with a mix of resolve and national pride, he declared, "History should remember us not for the size of our balance sheets, but for the strength of our backbone."
