Bengaluru-based ToneTag, a global offline proximity based mobile payment technology startup, has raised $1 million in funding from Reliance Capital’s Venture fund arm.
Founded in year 2013 by ex-Infosys Kumar Abhishek and co-founder Vivek Kumar Singh with clutch of Angel Investors like Ram Sellaratnam and Rajesh Yohahanna, ToneTag enables contactless payment solution in existing payment eco system by integrating its proprietary software development kit (SDK) at both merchant (mobile, POS, EDC) and customer interaction points (M-Wallet, M-Banking Apps).
Unlike NFC or QR Codes, which are hardware dependent; ToneTag works on all mobile devices including feature phones and does not require any capital investment in existing infrastructure.
“We plan to use most of the funding for hiring technical and sales & marketing resources, marketing for influencing user adoption and sales to enable merchants accept cashless transactions. We are not only building a world class product, but we are also investing in building a world class team which reflects innovation both on technology and business fronts”, said Himaghna Dey Sarkar, VP & Head of Business Development at ToneTag.
Mumbai based Investment Banking firm Multistrato Capital Advisors was the financial advisor for the deal. ToneTag, primarily a product company, will also be releasing mobile application for sellers in near future, enables contactless payments through mobile phones, using sound waves or NFC (Near Field Communication) technology with radio waves.