Home >Companies >ToneTag raises funds from Arun Seth, T.V. Mohandas Pai, others

Mumbai: Naffa Innovations Pvt. Ltd, a mobile payments company that operates as ToneTag, said it has received an undisclosed sum from a clutch of investors.

The investors include Nasscom foundation trustee Arun Seth, Manipal Global Education chairman T.V. Mohandas Pai, Snapdeal’s ex-chief product officer Anand Chandrasekaran and Gencoval Strategic Services Pvt. Ltd chairman Deepak Ghaisas. The round also saw participation from some overseas investors.

The Bengaluru-based firm said it has raised more money than its previous funding of $1 million from Reliance Venture Asset Management in August 2015, without giving details.

ToneTag plans to use the funds to expand its user base and grow the number of merchants that accept cashless transactions. ToneTag enables contactless digital transactions on mobile phones, card swiping machines, automated teller machines and other payment enabling devices with a software update, without the need to make hardware changes.

ToneTag has also partnered with banks and digital wallets, including HDFC Bank Ltd, ICICI Bank Ltd, Freecharge and Airtel, that cumulatively have a user base of more than 40 million. These companies have integrated their mobile applications with ToneTag software. The user can make contactless payment using any mobile phone through such mobile applications that are ToneTag enabled.

“ToneTag is enabling a customer experience of paying contactless, an experience similar to paying like cash but faster and more secure than cards and other payment systems like QR Codes. This is a technology that plays to the natural power of the phone, which all phones are inbuilt with, a speaker and mike and, hence, ToneTag will work with every phone not just smartphones," said Seth.

It is working towards increasing the number of merchants accepting contactless payments. “We want to reach 300,000 payment points by March,"said Kumar Abhishek, founder of ToneTag.

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