3one4 Capital, an early-stage venture capital firm, has announced a profitable and high-multiple exit from its investment in ToneTag, a fintech company known for its soundwave-based digital payment technology.
The exit, made from 3one4’s Fund II, marks the successful conclusion of an 8-year investment journey that began in 2017.
The firm had led ToneTag’s Pre-Series A round, betting early on the company’s potential to revolutionize digital payments through its patented soundwave technology. The recent secondary transaction, completed at the same valuation as the company’s $78 million Series B2 primary round, delivered what 3one4 described as “exceptional returns,” though the exact multiple was not publicly disclosed.
“This milestone is a testament to our conviction in ToneTag’s transformative vision and the deep operational involvement that has supported its scale over the years,” said the firm in a statement.
Founded in 2013 by Kumar Abhishek and Vivek Singh, ToneTag enables contactless digital payments using soundwaves—an innovative approach that works even without internet or NFC connectivity. Its technology has seen global deployment across sectors such as retail, mobility, and banking.
ToneTag raised ₹674 crore in its Series B2 funding round in February 2025, which included both primary and secondary capital. Other key investors in the company include Amazon, Mastercard, Reliance Capital, and Iron Pillar.
ToneTag claims to processed over $32 billion in transaction volume in FY25, with FY26E TPV projected to exceed $54 billion.
