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Amazon-backed ToneTag turns profitable after 10 years of operations

EntrackrEntrackr · 7m ago
Amazon-backed ToneTag turns profitable after 10 years of operations
Medial

After experiencing slow growth over the past two years (FY22 and FY23), contactless payment solution provider ToneTag has made a strong comeback, doubling its revenue in the fiscal year ending March 2024. By effectively cutting expenses, the Bengaluru-based company has also achieved profitability for the first time since its inception in 2014. ToneTag’s revenue from operations jumped 111.7% to Rs 47.78 crore during FY24 in contrast to Rs 22.57 crore generated in FY23, its financial statement sourced from the Registrar of Companies shows. ToneTag offers three product categories for businesses—voice commerce, online store, and in-store solutions—that cater to retail and F&B businesses. The firm enables businesses to integrate voice-powered interactions for shopping, ordering, and payment through its Oyeti platform. For customers, its VoiceSe UPI payment service facilitates voice-based transactions that work without internet access. The company collected Rs 30.87 crore via upfront customization services in FY24 accounting for 64.6% of the total operating revenue during the year. Revenue from smart stores dwindled 53.8% to Rs 10.33 crore year-on-year (YoY) from Rs 22.36 crore. The company also generated revenue of Rs 4.14 crore from monthly fees (from businesses), Rs 1.63 crore via one-time integration fees, and Rs 81 lakh through license fees. Moving toward the expense side, employee benefits formed 49% of the total expenditure. This cost remained almost flat at Rs 13.22 crore during the last fiscal year (FY24). Finance cost ballooned over 5X to Rs 2.49 crore while telephone cum IVR charges surged 143.8% to Rs 2.17 crore during the period. Overall, the company spent Rs 26.95 crore in FY24, 9.3% less compared to FY23 (Rs 29.70 crore). Followed by an impressive growth in scale and controlled expenditure, ToneTag turned profitable and booked Rs 20.94 crore profits during FY24 against Rs 6.12 crore loss in FY23. Operating cash outflows, however, increased 73.6% to Rs 2.24 crore in FY24. ToneTag’s improved bottom line also helped it to register positive EBITDA margin and ROCE which bettered to 54.18% and 30.09%, respectively. On a unit level, the firm spent Re 0.56 to earn a rupee of operating revenue in the last fiscal year. At the end of FY24, the company reported Rs 1.6 crore in cash and bank balances. However, its current assets nearly tripled to Rs 41.94 crore, driven by a significant spike in trade receivables during the period. According to media reports, ToneTag is looking to raise $50 million in primary and secondary funding from Iron Pillar and other investors. As per TheKredible, ToneTag has raised over Rs 90 crore ($11 million) to date and was valued at nearly Rs 800 crore ($96 million) in its last round. The company, which is backed by Amazon, Reliance, and 3one4 Capital, hasn’t raised a new round for more than six and a half years. Among contactless payment solution providers, ToneTag competes with Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik et al.

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Amazon-backed ToneTag secures $78 Mn after 7-year hiatus

EntrackrEntrackr · 5m ago
Amazon-backed ToneTag secures $78 Mn after 7-year hiatus
Medial

Amazon-backed ToneTag secures $78 Mn after 7-year hiatus Contactless payment solution provider ToneTag has raised $78 million in its Series B2 funding round. The funding is a combination of primary and secondary capital and is led by ValueQuest S.C.A.L.E. Fund and its co-investors who have committed over 50% of the fundraise. Existing investor Elevate Innovation Partners LLC are also participating in this round. This investment will enable ToneTag to revamp customers' payment experiences and accelerate its global expansion, the company said in a press release. The Bengaluru-based company has secured a new funding round after nearly seven years, making it one of the few startups to raise capital after such a long hiatus. Founded by Kumar Abhishek, ToneTag provides three product categories for businesses: voice commerce, online store solutions, and in-store solutions, tailored for retail and F&B sectors. Through its Oyeti platform, the company enables businesses to integrate voice-powered shopping, ordering, and payment experiences. For customers, its VoiceSe UPI payment service allows voice-based transactions even without an internet connection. ToneTag processes over 30 million transactions daily using its unique soundwave technology. This allows secure payments through sound, making it easy to use even without the internet. Big companies like Google and Amazon, along with major Indian banks like SBI and ICICI, trust ToneTag for their payment solutions. According to data intelligence platform TheKredible, ToneTag’s revenue from operations jumped 111.7% to Rs 47.78 crore during FY24 in contrast to Rs 22.57 crore generated in FY23. The firm also achieved profitability for the first time since its inception in 2014. Among contactless payment solution providers, ToneTag competes with Paytm, PhonePe, PineLabs, BharatPe, and MobiKwik et al.

Leegality turns profitable with 87% revenue growth in FY24

EntrackrEntrackr · 9m ago
Leegality turns profitable with 87% revenue growth in FY24
Medial

Document infrastructure platform Leegality maintained its growth trajectory in the fiscal year ending March 2024. After achieving 100% revenue growth in FY23, the IIFL Fintech Fund-backed company reported an 87% spike in scale in the latest fiscal year. Leegality’s revenue from operations jumped to Rs 62 crore in FY24, as per its financial statement filed with the Registrar of Companies. Leegality enables businesses to digitally transform document logistics, eliminating physical paperwork in the lending ecosystem by providing digital infrastructure, including eSign and eStamping solutions. The sale of these services was the only source of collection for the firm in FY24. Leegality additionally earned Rs 4.2 crore from interest on bank deposits, bringing its total income to Rs 66.41 crore in FY24, a substantial increase from Rs 35.51 crore in FY23. Looking at expenses, employee benefit was the major contributor, accounting for 56% of total costs, increasing by 62.5% to Rs 36.4 crore in FY24 from Rs 22.4 crore in FY23. E-Sign Charges made up 15% of total expenses, rising 2.3 times to Rs 9.5 crore.Tech infrastructure formed 10% of expenses, growing by 55% to Rs 6.6 crore. Other costs, including stamp processing, advertising, and legal fees, brought total expenses to Rs 65 crore during the last fiscal year, reflecting a 66% increase from Rs 39 crore in FY23. With significant revenue growth, Leegality turned profitable in FY24, reporting a profit of Rs 1.11 crore, compared to a loss of Rs 3.5 crore in FY23. Its ROCE and EBITDA margin stood at -2.75% and 3.33%, respectively. On a unit-basis level, the company spent Rs 1.04 to earn each rupee of operating revenue in FY24. FY23-FY24 FY23 FY24 EBITDA Margin -8.53% 3.33% Expense/₹ of Op Revenue ₹1.18 ₹1.04 ROCE -7.49% 2.75% Even though it operates in a fairly competitive space, Leegality’s turn to profitability indicates the ‘sensible’ economics within the segment. Even as more and more transactions and the documentation required are being digitised, the scope of work for Leegality and its peers will only increase, providing a clear pathway to growth. The only risk we can see is any government backed alternative like say, Digilocker which expands services to overlap with what these offer.

Exclusive: Porter turns profitable with over Rs 4,000 Cr revenue in FY25

EntrackrEntrackr · 2d ago
Exclusive: Porter turns profitable with over Rs 4,000 Cr revenue in FY25
Medial

Exclusive: Porter turns profitable with over Rs 4,000 Cr revenue in FY25 After recording a 56% year-on-year growth in FY24, on-demand intra-city logistics platform Porter has delivered another strong performance in FY25, posting nearly 50% growth and turning profitable, according to three sources and some documents reviewed by Entrackr. Porter revenue from operations grew to 4,300 crore in the fiscal year ending March 2025 from Rs 2,734 crore in FY24, as per the documents. Porter provides a full-stack logistics platform to help businesses optimize their last-mile delivery operations. It generated 99% of its total operating revenue via the goods transportation services while the remaining came from platform fees and other operating activities. It primarily serves micro, small, and medium enterprises (MSMEs) and has expanded its presence to over 20 cities in India. According to the sources, the company managed to cut costs and reported a profit after tax (PAT) of Rs 54 crore in FY25. During FY24, the Bengaluru-based firm cut down its losses by 45% to Rs 95.7 crore. Queries sent to Porter on Monday did not elicit a response until publication of the story. We will update the story in case it responds. Porter has raised over $332 million to date, including its $200 million Series F round in May this year, with Kedaara Capital and Wellington Management leading the investment. Prior to this, the company secured $100 million led by Tiger Global in 2021. Soon after the unicorn round, Porter also provided an exit to its early backer Peak XV, which generated returns of over Rs 1,200 crore on an investment of Rs 116 crore. Porter earlier operated with minimal competition from VC-funded players, but the landscape has shifted with Uber, Delhivery, and Rapido (in the two-wheeler category) entering the space.

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