Onton Secures $7.5M to Expand AI-Powered Shopping Platform Beyond Furniture

Onton Secures $7.5M to Broaden Its AI Shopping Platform Beyond Furniture

Onton, an AI-driven shopping platform initially focused on furniture, has recently raised $7.5 million in a funding round led by Footwork. This round, which also included participation from Liquid 2, Parable Ventures, and 43, brings Onton’s total funding to around $10 million.

The company rebranded from Deft to Onton earlier this year to resolve branding confusion and domain challenges. Co-founder Zach Hudson explained that despite large language models (LLMs) aiding shopping intent predictions, many e-commerce challenges persist. Hudson noted an increase in time consumers take to decide on purchases, signaling a gap Onton aims to address.

Onton’s core technology is based on a neuro-symbolic architecture, which reduces hallucinations common in LLMs. This approach allows Onton to deliver more logical and reliable product search results. The AI also learns real-world product characteristics beyond descriptions, such as stain resistance in pet-friendly furniture. Hudson emphasized, “Our tools learn through every search and become smarter rapidly.”

The platform supports multiple input methods, including image uploads and detailed prompts, enabling users to find furniture for specific home or office setups. Onton’s infinite canvas further allows ideation by mixing existing images with product suggestions. These innovative features have helped Onton convert customers three to five times more effectively than traditional e-commerce sites.

Onton plans to use the recent funding to expand into new product categories. Apparel is the immediate focus, followed by consumer electronics. Hudson mentioned that technological improvements make launching apparel easier, though the company will face competition from startups like Daydream, Aesthetic, and Style.ai.

The startup’s monthly active users surged from 50,000 to over 2 million in recent months. Onton’s team has expanded from three to ten employees this year, with plans to hire five more engineers and researchers. This investment and expansion mark Onton’s commitment to transforming AI-powered shopping beyond furniture into a broader retail experience.