ToneTag is in early-stage discussions with Iron Pillar to raise at least $50 Mn in a mix of primary and secondary share sale
The transaction is expected to see the startup’s valuation more than double from its last valuation of $100 Mn
Founded in 2013 by Vivek Singh and Kumar Abhishek, ToneTag offers audio-based authentication and proximity payment solutions for online and offline commerce
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Offline mobile payments startup ToneTag is reportedly in early-stage discussions with Mumbai-based venture growth investor Iron Pillar to raise at least $50 Mn (about INR 420 Cr) in a mix of primary and secondary share sale. The funding round will also see new investors join the startup’s cap table.
“Iron Pillar may co-lead the round along with other investors, with whom talks have begun,” Economic Times reported quoting a source.
As per the report, the funding round will see a primary capital infusion of $30-$35 Mn. The transaction is also expected to see the startup’s valuation more than double from its last valuation of $100 Mn.
ToneTag declined to comment on Inc42’s queries on the development.
Founded in 2013 by Vivek Singh and Kumar Abhishek, ToneTag offers audio-based authentication and proximity payment solutions for online and offline commerce. It also develops integrable software to deploy voice-based digital payment systems. The startup has raised a total funding of over $10 Mn till now from investors like Amazon, Mastercard and Elevate Innovation Partners.
Last year, Iron Pillar closed its ‘Iron Pillar Fund II series’ of funds at $129 Mn. The VC firm had plans to invest in Series B and Series C stage SaaS startups operating in India.
Since then, the firm has made one investment in supply chain and logistics SaaS startup Pando. The US-based startup, which operates out of Chennai, raised $30 Mn in its Series B round back then.
Founded in 2016, Iron Pillar offers growth capital and assistance to enterprise tech and consumer tech startups to expand globally. It mainly leads Series B and C funding rounds and later doubles down on the breakout businesses with 5X to 10X of its initial investment. Its portfolio features startups like BlueStone, Curefoods, FreshToHome, Uniphore, and Skill-Lync.
The development comes at a time when startup funding is on the rise. Indian startups cumulatively raised $8.7 Bn across 766 deals in the first nine months of the ongoing calendar year. This was a 20% increase from the $7.2 Bn raised via 691 deals in the same period last year.
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