New Delhi, Feb. 11 -- Mumbai-based ValueQuest, which closed its maiden private equity fund earlier this month after exceeding its targeted corpus, has led a $78 million (Rs 674 crore) investment round in payments solutions provider ToneTag.
Investors in the latest round include ValueQuest S.C.A.L.E. fund and venture capital firm Iron Pillar. Its existing investor Elevate Innovation Partners also participated in the round.
The Bengaluru-based startup, operated by Naffa Innovations Pvt. Ltd, has secured fresh capital nearly seven years after its last fundraise. Amazon Inc. and Mastercard had invested in the startup in 2018.
ToneTag said the latest round is a mix of primary capital infusion and secondary transaction but declined to share details. It also counts Reliance Capital among its backers.
The company said it plans to use the fresh capital to scale its operations, advance R&D efforts, recruitment, and in marketing initiatives. It also plans to accelerate its expansion plans in new markets in Asia, South America and the Middle East.
ToneTag provides voice commerce, online store solutions, and in-store solutions to businesses. The startup was founded in 2013 by Kumar Abhishek and Vivek Kumar Singh. Abhishek, who is its chief executive, worked with tech companies Infosys, MindTree and IBM in the past. Singh, a chartered accountant by qualification, was previously a financial analyst at mobileGullak, a platform that offered payment and loyalty management solutions for retailers.
"India's digital payment landscape has been growing rapidly, and we are excited to partner with ToneTag," said Pushkar Jauhari, MD and Head of Private Equity at ValueQuest. "ToneTag's innovative voice-based technology coupled with regulatory and customer validation positions it well to capture market opportunity."
Published by HT Digital Content Services with permission from VC Circle.