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§ Private Profile · London, United Kingdom
OnBuy is a technology company.
OnBuy operates as an online marketplace, facilitating connections between third-party retailers and a broad base of customers across various product categories. The platform's core capability lies in its commitment to a transparent and fair operational model, notably distinguishing itself by not directly competing with its sellers through its own retail offerings. This approach aims to foster a more equitable environment for its business partners.
The company was founded in 2016 by Cas Paton, who envisioned a different kind of e-commerce ecosystem. Paton's insight stemmed from a desire to establish a genuine marketplace that would empower independent businesses. His goal was to create a platform that prioritised the success of its selling partners by offering an ethical trading space free from the pressures of direct marketplace competition.
OnBuy serves a dual customer base: consumers seeking a wide selection of products and retailers looking for a supportive and transparent sales channel. The company’s mission focuses on cultivating a balanced and trustworthy e-commerce environment. Its long-term vision is to remain dedicated to fair business practices, providing an alternative model for online retail that benefits both merchants and shoppers alike.
OnBuy has raised $40.0M across 4 funding rounds.
OnBuy has raised $40.0M in total across 4 funding rounds.
OnBuy is a UK-based e-commerce marketplace founded in 2016 that operates as a one-stop shopping platform, connecting customers with products from over 11,000 brands and retailers like Lego, Samsung, AO, and Sports Direct.[1][2][3] It serves consumers seeking variety and instant cashback on every purchase while enabling retailers to sell without competition from the platform itself, solving pain points in online retail through fair fees, transparency, and low infrastructure costs as a pure tech product that doesn't hold inventory.[2][3][4] The company has demonstrated explosive growth, with gross merchandise value (GMV) surging 24,000% since launch, reaching milestones like £10m monthly sales within four years, over 6 million customers, and AI-driven profitability shifting from £1m monthly losses to £20m gross profit on £150m sales in the past year; it has raised $58.6M and earned accolades like Deloitte UK Technology Fast 50 winner for three years and FT1000 Europe's fastest-growing companies.[1][2][3][4]
OnBuy was founded in November 2016 by Cas Paton in Bournemouth, UK, after he left the Royal Navy at 21 and bootstrapped his first business with £80.[1][2] Paton launched the marketplace to inject transparency and fair play into online retail, addressing the "chicken-and-egg" challenge of empty platforms lacking sellers or buyers by treating all retailers equally with flat fees and no self-competition.[2][4] Early traction built slowly—18 months to £100k monthly sales, then accelerating to £1m and £10m within subsequent years—fueled by critical mass in April 2020 as major brands like Unilever, P&G, and ao.com joined, boosting seller base by 10% in September that year; by 2021, it employed 100 staff and raised £35m for expansion.[2][4] Pivotal moments include AI adoption transforming finances and reviving brands like Comet in 2025 via £10m investment for an online relaunch.[1][3]
OnBuy rides the e-commerce marketplace wave in a £84bn UK market, targeting 5% share amid post-pandemic online shopping surges and high street declines, as seen in its 2025 Comet revival.[1][4] Timing aligns with AI democratization, allowing a 2016 startup to fast-track against multibillion-dollar incumbents like Amazon (with 25+ years optimization) by slashing dev time and costs.[2][3] Favorable forces include retailer frustration with high fees elsewhere, consumer demand for cashback/transparency, and UK tech ecosystem support via Deloitte Fast 50/EMEA Tech 500 recognition.[2][3] It influences the landscape by boosting competition—benefiting sellers with better margins and consumers with prices/choice—while proving pure tech marketplaces can scale globally without inventory hurdles.[3][4]
OnBuy's trajectory positions it for international dominance as a fair-play e-commerce alternative, with AI fueling further tech leaps, overseas expansion post-£35m raise, and potential GMV dominance via 500+ monthly retailers.[2][3] Trends like AI optimization, instant rewards, and retailer-first models will propel growth, especially as economic pressures favor low-cost challengers; a new entity, ONBUY TECHNOLOGY LIMITED (inc. Oct 2024), hints at tech diversification amid strike-off proposals.[5] Its influence may evolve by pressuring giants on fees and ethics, reviving legacy brands, and redefining UK e-commerce—cementing Paton's vision from £80 startup to £200m-valued disruptor.[1][3]
OnBuy has raised $40.0M across 4 funding rounds. Most recently, it raised $28.0M Series A in July 2021.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jul 1, 2021 | $28M Series A | — | Fuel Ventures, Immeasurable, KHOCEL INVEST, Christian Faes, Bring Ventures, Thomas Tscherning | Announced |
| Jul 1, 2020 | $6M Series A | Fuel Ventures | Immeasurable, KHOCEL INVEST, Lead Edge Capital, GUY Hands, Knut Frängsmyr, Nathalie Gaveau | Announced |
| Apr 1, 2020 | $2M Seed | — | Fuel Ventures | Announced |
| Feb 1, 2020 | $4M Seed | — | Fuel Ventures | Announced |
OnBuy has raised $40.0M in total across 4 funding rounds.
OnBuy's investors include Fuel Ventures, Immeasurable, KHOCEL INVEST, Christian Faes, Bring Ventures, Thomas Tscherning, Lead Edge Capital, Guy Hands, Knut Frängsmyr, Nathalie Gaveau.