3one4 Capital Scores 5-7X Returns From ToneTag Exit
Venture capital firm 3one4 Capital has successfully exited digital payments solutions provider ToneTag, achieving 5-7 times returns on its investment. The exit occurred about four months after ToneTag’s significant financial milestone.
Investment Details
3one4 Capital’s investment in ToneTag was made through its $41 million fund II, which typically invested up to $1 million in various startups. The VC firm claimed that the secondary exit occurred at the same valuation as ToneTag’s Series B2 funding round.
ToneTag’s Financial Performance
ToneTag turned profitable in FY24, reporting a profit after tax (PAT) of INR 21 crore, compared to a loss of INR 6.1 crore in FY23. This significant turnaround likely contributed to the successful exit for 3one4 Capital.
Industry Context
The successful exit highlights the growing potential in the digital payments space. As fintech companies continue to innovate and achieve profitability, they attract significant interest from venture capital firms.
Related Developments
The fintech sector continues to see significant movements, with other companies also making headlines. For instance, PhonePe is preparing for a $1.5 billion IPO, and Pine Labs has launched a QR-first device with card support.
As the fintech ecosystem evolves, successful exits like 3one4 Capital’s from ToneTag demonstrate the potential for substantial returns on investment in the sector.
