Onton Secures $7.5M to Broaden AI-Driven Shopping Platform Offerings

Onton Secures $7.5M to Broaden AI-Driven Shopping Platform Offerings

Tech companies are increasingly leveraging artificial intelligence (AI) to enhance online shopping experiences, moving beyond simple content generation. Prominent players like OpenAI, Google, and Amazon are investing in AI-powered assistants designed to conduct product research and tailor recommendations for shoppers. In parallel, startups like Perplexity, Daydream, and Cherry are also entering the AI-driven product discovery space.

Amid this trend, Onton, formerly known as Deft, has reported exponential growth, with its monthly active users surging from 50,000 to over 2 million. This impressive increase aligns with millions of product searches and image generations processed through its AI-based furniture shopping platform.

To capitalize on this momentum, Onton has secured $7.5 million in funding, led by Footwork with contributions from firms such as Liquid 2, Parable Ventures, and 43. This latest funding round brings Onton’s total investment to around $10 million, allowing the company to diversify its offerings beyond furniture to apparel and consumer electronics.

Following its rebranding from Deft to Onton earlier this year to eliminate confusion surrounding its original name and domain issues, the startup aims to enhance its user experience. Co-founder Zack Hudson highlighted that while large language models (LLMs) can predict user intent, many e-commerce challenges remain unresolved. He noted a notable increase in the time consumers take to make purchasing decisions.

Onton employs a neuro-symbolic architecture in its technology, which helps to mitigate the “hallucination” issues often seen with conventional LLMs, yielding more accurate search outcomes. Hudson explained that the company’s system evolves by learning from real-world data not typically found in product descriptions. For example, it recognizes that polyester material can enhance a furniture piece’s pet-friendliness by resisting stains and scratches.

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Additionally, Onton provides various input methods for users, enabling them to upload images or specify prompts for tailored results. This functionality aids users in visualizing their desired home or office setups. The platform also features an infinite canvas for ideation, allowing customers to furnish a space by incorporating existing room images.

By diversifying beyond a chat-only interface, Onton is poised to streamline the shopping process, converting customers 3-5 times more effectively than traditional e-commerce platforms due to improved data reliability. Hudson expressed confidence in the upcoming launch of their apparel line, citing the technical adjustments and enhancements as pivotal for success. With current employee numbers climbing from three to ten, Onton plans to further expand its team to 15, focusing on hiring engineers and researchers to support its growth.

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