ToneTag, an Amazon-backed Fintech startup, in talks to raise $50 million
ToneTag, an offline mobile payments startup, is in preliminary discussions with Iron Pillar, a Mumbai-based venture capitalist, to raise at least $50 million (around INR 420 crores) through a combination of sales of primary and secondary actions. This round of funding should attract new investors to the startup’s capital.
Key details of the financing cycle
- Investment structure: The financing is expected to consist of a primary capital injection of $30-35 million.
- Valuation growth: The transaction is likely to more than double ToneTag’s previous valuation of $100 million.
- Investor participation: Iron Pillar is expected to co-lead the round alongside other potential investors.
About ToneTag
Founded in 2013 by Vivek Singh and Kumar Abhishek, ToneTag specializes in audio authentication and proximity payment solutions for online and offline commerce. The startup is known for developing embeddable software that facilitates voice-based digital payment systems.
Funding history
- ToneTag has raised over $10 million to date, with notable investments from Amazon, Mastercard, and Elevate Innovation Partners.
- The startup has gained attention for its innovative solutions that improve the convenience and security of mobile payments.
Iron Pillar Investment Strategy
Iron Pillar closed its “Iron Pillar Fund II” series at $129 million last year, focusing on investing in B and C stage SaaS startups in India. Since then, it has invested in various sectors, including logistics and supply chain management.
Remarkable portfolio
Iron Pillar has a diverse portfolio that includes successful startups such as:
- Blue stone
- Healing foods
- FreshAtHome
- Uniphore
- Skill-Lync
Current Trends in Startup Funding
The ToneTag funding discussions come amid a growing trend of investment in startups in India. In the first nine months of the current calendar year, Indian startups have collectively raised $8.7 billion across 766 deals, a 20% increase from the $7.2 billion raised in during the same period last year. This upward trend highlights the growing investor confidence in the Indian startup ecosystem.