Bengaluru-based startup ToneTag has raised $78 million in a recent funding round. This large investment is a testament to the innovative approach the company has towards payment solutions and its potential for global expansion.

The funding round was led by ValueQuest S.C.A.L.E. Fund while significant co-investors were Iron Pillar and Elevate Inflection Capital LLC. There was also participation from the existing investor Elevate Innovation Partners LLC in this funding round. The investment is a combination of both primary and secondary capital, although the company did not specify the distribution.

Founded by Abhishek Kumar, ToneTag has carved a niche in the digital payments sector due to its innovative sound-based technology. Unlike other payment firms, ToneTag developed a system that uses sound waves to help merchants facilitate transactions online and offline. Given that it does not require internet connectivity, this technology can be commonly applied especially where there is limited digital infrastructure.

Along with NPCI, ToneTag supports UPI123 Pay, the feature phone-based payment service. It will take the digital payments ability to those basic mobile phones and, by that way, make it financially inclusive across varied demographies.

The infusion of new capital will be used to scale the operations of ToneTag in India and internationally in Asia, South America, and the Middle East. The company will enhance its research and development efforts, expand its team, and increase marketing initiatives to promote global adoption of its voice-based payment solutions.

ToneTag’s innovative approach to digital payments places it at the forefront of changing financial technologies. Using sound-based technology, this company would address key problems with accessibility and payment security as well as ensure user-friendliness and adaptability to changing market needs.

With the sector of digital payments growing, ToneTag’s unique offerings and strategic expansion plans underscore its potential to make a difference in how transaction happens globally. The funding it recently received validates not only the business model that the company has undertaken but also sets the stage for what would be its next phase of growth and innovation.