15 hours ago
3one4 Capital Exits ToneTag with Strong Returns
The firm had invested in ToneTag during its pre-Series A round in 2017.
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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.
