“Sounding the Future of Payments: How ToneTag Is Reinventing Digital Transactions and Scaling with Strategic Capital”

Digital payments have become a defining force in the evolution of global commerce — yet for many emerging markets, traditional contactless technologies like NFC or QR codes still face limitations due to hardware costs, connectivity issues, and user adoption barriers. Enter ToneTag — a Bengaluru-based deeptech fintech that is doing something radically different: powering payments using sound waves.

Rather than relying on specialized hardware or constant internet connectivity, ToneTag’s technology uses ultrasonic audio frequencies to transmit encrypted transaction data between devices — creating a new contactless interface that works on devices as simple as a smartphone’s existing speaker and microphone. It’s a concept that sounds futuristic — and in many ways, it is.

The Innovation That Changed the Contactless Landscape

Founded in 2013 by Kumar Abhishek and Vivek Singh, ToneTag has steadily built one of the world’s largest soundwave-based transaction networks. The company’s proprietary communication protocol eliminates the need for device pairing, NFC chips, or QR scanning. Because it uses hardware already present in everyday devices, ToneTag effectively lowers the cost and friction of contactless transactions, particularly in regions with infrastructure limitations.

Today, the company processes more than 25 million daily transactions, adding up to over $3 billion in monthly transaction volume, and has expanded its network to nearly 2 million touchpoints globally — with a strong presence already established in India and Southeast Asia, and further expansion planned into markets like Brazil and Australia.

A New Era of Voice-Enabled Payments

ToneTag is not just innovating at the transaction layer — it’s pushing the boundaries of how people interact with payment systems. Its platform supports a range of solutions, including:

• Sound-based proximity payments that work even with low connectivity

• VoiceSe UPI payments, a voice-based UPI solution designed for feature phones and feature-phone users, enabling payments using voice commands with no internet required — a major leap for financial inclusion in underserved markets.

• Voice commerce tools that enable shopping, ordering, and payment through voice interactions alone.

This combination of sound and voice-powered interfaces positions ToneTag as more than a payments company — it is building conversational and inclusive fintech experiences that reflect the next phase of digital commerce.

Funding Milestones: From Series B to Strategic Investment

1. $78 Million Series B2 Funding (Feb 2025)

In a landmark deal, ToneTag secured USD 78 million (₹674 crore) in a Series B2 funding round led by ValueQuest S.C.A.L.E. Fund with participation from Iron Pillar, Elevate Inflection Capital LLC, and existing backers including Elevate Innovation Partners LLC. The raise combined both primary and secondary capital, marking one of the largest funding rounds ever for an Indian payments startup.

The funding was explicitly aimed at:

• Building global scale and expanding into new markets (Asia, South America, Middle East)

• Accelerating R&D and product development

• Enhancing talent acquisition and marketing reach

This round validated ToneTag’s status as a deeptech winner in a crowded payments ecosystem and underscored investor confidence in its potential to become a global payments infrastructure provider.

2. Rs 35.16 Crore Strategic Investment from Qualcomm Ventures (Feb 2026)

In the most recent development, ToneTag raised Rs 35.16 crore (~$3.8 million) from Qualcomm Ventures — a strategic investor focused on cutting-edge technology and AI-driven platforms. This latest funding — reported from corporate filings with the Ministry of Corporate Affairs — builds on ToneTag’s innovation roadmap and reflects interest in edge AI-powered payment modules designed and engineered in India for global deployment.

According to the company’s statement, the fresh capital will support development of intelligent, payment-ready edge devices that further simplify payments and interactions via a scalable sound-based protocol — bringing intelligent payments to everyday and IoT devices worldwide.

Strategic Positioning: From Domestic Leader to Global Innovator

ToneTag’s growth story is firmly rooted in the Indian digital payments boom, where Unified Payments Interface (UPI) adoption continues to soar. With UPI reporting billions of transactions monthly, sound-based payments are positioned as a powerful complement — particularly for environments where:

• Devices have limited connectivity

• Merchants lack modern POS hardware

• Users rely on basic feature phones

The introduction of the VoiceSe UPI service further expands financial accessibility by enabling voice-based transactions for feature phone users without internet connectivity — a crucial development for deepening digital financial inclusion across India.

Beyond India, ToneTag’s expansion into global markets — including Southeast Asia and Latin America — reflects broader investor confidence in its scalable product architecture and the international appetite for low-infrastructure payment technologies.

Challenges and Opportunities Ahead

Despite its success, ToneTag operates in an intensely competitive space with incumbents like QR-based solutions, NFC payment protocols, and traditional card networks. However, it differentiates itself with:

• Zero requirement for specialized hardware

• Patented soundwave and proximity protocols

• Voice and edge AI-enhanced payment modules

• Financial inclusion-focused services for non-smartphone users

The challenge — and opportunity — now lies in converting technology leadership into market dominance across regions, forging deeper integrations with financial institutions, and scaling interoperable solutions that work seamlessly with existing ecosystems.

Conclusion: Soundwaves as a Payment Frontier

ToneTag’s trajectory from a pioneering concept to a globally funded deeptech success story highlights a broader shift in how payments — and digital interactions — are evolving. As the company innovates with edge AI, voice-powered services, and scalable soundwave protocols, it is not just reshaping digital payments — it is redefining how users engage with money itself.

In an age where experience matters as much as technology, ToneTag’s bold vision — powered by strategic capital and cutting-edge innovation — may well mark the beginning of a new era in financial infrastructure.