ToneTage, a Bangalore-based startup that offers online payments solution using sounds or NFC, has secured around $10 million in its new funding round. The funding comes from a clutch of investors and was led by Amazon and MasterCard.
Along with them, the investors who participated in this funding round includes Manipal Global Education chairman Mohandas Pai, PremjiInvest’s chief investment officer T.K. Kurien and Facebook executive Anand Chandrasekaran.
According to the reports, the company is also in talks with a few other strategic investors. The company has so far raised over $10.4 million in four funding rounds from Reliance Capital, Amazon, MasterCard, Mohandas Pai, Anand Chandrasekaran, among others.
This transaction marks Amazon’s third major venture investment in India in the past six months. It had also bet on online insurance start-up Acko and digital lending start-up Capital Float. Amazon’s investment comes at a time when the Seattle-based e-commerce giant is doubling down on its digital payments business globally, especially in strategically important countries such as India.
ToneTag already has an existing partnership with Mastercard, and is now in the process of integrating its technology, which uses sound waves to transfer data, with the Amazon platform.
Founded in 2013, ToneTag enables contactless digital transactions on mobile phones, card swiping machines, automated teller machines and other payment-enabling devices. The company facilitates on-delivery payments and peer-to-peer transactions, and works with over 300,000 merchants, including Fabindia and Shell petrol pumps, among others.
The startup has also forged alliances with a number of leading banks and digital wallets, including HDFC Bank Ltd, ICICI Bank Ltd, Freecharge and Airtel. The companies have integrated their digital applications with ToneTag’s software.