Business
Onton Raises $7.5M to Expand AI Shopping Platform Beyond Furniture
San Francisco, CA — Onton, an AI-powered furniture shopping platform, announced today that it has raised $7.5 million in a funding round led by Footwork. The financial boost will help the company expand its offerings beyond furniture into apparel and consumer electronics.
Onton, which was formerly known as Deft, has seen its user base skyrocket from 50,000 monthly active users to over 2 million. This growth highlights a broader trend of consumers increasingly turning to AI for product discovery.
According to Zach Hudson, co-founder of Onton, the startup’s technology employs what’s known as neuro-symbolic architecture, which can mitigate the “hallucination” problems often associated with traditional large language models (LLMs). This results in more reliable and logical search results for consumers.
Hudson noted that this technology allows the platform to incorporate real-world information not typically included in product descriptions. For example, it can suggest pet-friendly furniture by identifying materials that are more resistant to stains and scratches, enhancing the shopping experience.
The raised funds will allow Onton to expand its product catalog and its team, which has grown to 10 employees since its rebranding earlier this year. The company aims to hire five more engineers and researchers to assist in its growth.
As Onton prepares to enter the apparel market, Hudson said that its new capabilities will offer users more interactive shopping options. Users can upload images of their rooms, generate designs, and receive curated product suggestions, all designed to make the shopping process easier.
With an impressive conversion rate ranging from three to five times higher than traditional e-commerce sites, Onton plans to leverage its unique technology as it ventures into new retail categories. Hudson expressed confidence that its distinct approach would help the startup succeed amidst growing competition in the AI shopping sector.
