Onton Secures $7.5M to Fuel Expansion of AI-Powered shopping Platform
Onton, an e-commerce startup leveraging artificial intelligence to enhance online shopping, has raised $7.5 million to expand its platform beyond furniture into new categories like apparel. The funding will be used to grow the company’s team adn further develop its AI-driven search and ideation tools.
Founded in 2023, Onton aims to address the challenges consumers face when searching for products online, especially when they struggle to articulate their desired aesthetic. Rather than relying solely on text-based searches,Onton offers an ”infinite canvas” where users can combine images – including their own rooms - with products found on the site for visual ideation and AI-powered recommendations. The company reports conversion rates 3-5x higher than traditional e-commerce sites, attributing this success to the trust built through its underlying data.
onton’s new features include image generation and the ability to virtually furnish spaces using images of a user’s own room.the company believes this visual approach provides consumers with more options, even when they lack precise descriptive language. The startup has grown from three to ten full-time employees and plans to reach 15 by hiring engineers and researchers.
The company anticipates increased competition in the apparel space, citing Daydream, Aesthetic, and Style.ai as key players. Onton is currently building its apparel catalogue and plans to launch the category soon, leveraging the technological and interface changes it has already implemented.
