Onton, an AI-powered shopping platform previously known as Deft, has announced the closure of a $7.5 million funding round. The investment was led by Footwork, with participation from Liquid 2, Parable Ventures, and 43, bringing the company's total funding to approximately $10 million. The startup stated it will utilize the capital to expand its product discovery services beyond furniture into new categories, including apparel and eventually consumer electronics.
The funding follows significant growth reported by Onton, which claims its user base has increased from 50,000 to over 2 million monthly active users, processing millions of searches and image generations. The company rebranded to Onton earlier this year, citing initial confusion surrounding its former name and challenges in securing a premium domain.
Onton's core technology leverages a "neuro-symbolic architecture," which co-founder Zach Hudson stated addresses what he referred to as "hallucination problems" often associated with large language models (LLMs). This approach, according to Hudson, enables the platform to provide more logical search results and learn real-world product attributes that may not be explicitly included in product descriptions. For example, the system can identify pet-friendly furniture by recognizing that items containing polyester may offer greater stain and scratch resistance.
The platform offers multiple input methods and features designed to assist in product discovery. Users can upload images or provide text prompts to generate desired interior setups and subsequently find furniture based on these visualizations. Onton also includes an infinite canvas for ideation, allowing users to integrate existing images with discovered products or visualize room furnishing scenarios. The company has reported that these methods contribute to customer conversion rates 3-5 times higher than those observed on traditional e-commerce sites.
With its technological infrastructure, Onton plans to launch its apparel vertical soon. This expansion will place the company in competition with other AI-driven platforms such as Daydream, Aesthetic, and Style.ai. The company has grown its team from three full-time employees in 2023 to ten, with further plans to hire engineers and researchers to reach 15 employees.
