Onton raises $7.5M to expand its AI-powered shopping site beyond furniture | TechCrunch

Onton’s AI Shopping Platform Secures $7.5 Million to Revolutionize E-commerce

The AI-powered furniture shopping platform Onton has raised $7.5 million in a new funding round. This investment was led by venture firm Footwork. The capital will fuel the startup’s expansion into new retail categories like apparel.

Onton, previously known as Deft, has experienced explosive user growth. Its monthly active users have skyrocketed from 50,000 to over 2 million. This surge highlights the growing consumer shift towards using AI for product discovery.

AI shopping platform

Neuro-Symbolic AI Aims to Solve E-commerce Search Problems

Onton’s core technology uses a neuro-symbolic architecture. Co-founder Zack Hudson says this approach eliminates the hallucination problems common with large language models. It provides more logical and accurate search results for shoppers.

The technology can learn real-world information not found in product descriptions. For example, it understands that polyester fabrics are more stain-resistant. This makes furniture suggestions more pet-friendly based on material properties, not just keywords.

Expansion Into Apparel and New Features Drive Future Growth

With the new funding, Onton plans a major expansion into apparel shopping. This move will put it in direct competition with other AI discovery startups. The company is already building its product catalog for the new vertical.

The platform has moved beyond a simple chat interface. Users can now upload room images and have the AI furnish them visually. An infinite canvas allows for mixing product images with personal photos for better ideation. These features have reportedly increased customer conversion rates by three to five times compared to traditional e-commerce sites.

The $7.5 million investment solidifies Onton’s position in the competitive AI shopping platform market. Its unique technology addresses critical e-commerce pain points like decision fatigue. The AI shopping platform sector is poised for further disruption as these tools become mainstream.

Thought you’d like to know

What is Onton’s main business?

Onton operates an AI-powered shopping platform. It initially focused on helping users discover and purchase furniture. The company now plans to expand into apparel and electronics.

How does Onton’s AI technology work?

It uses a neuro-symbolic architecture to understand user intent and product attributes. This method reduces AI hallucinations common in other systems. The AI learns from real-world properties, like material durability, to give better advice.

How many users does Onton have?

The platform has grown to over 2 million monthly active users. This is a significant increase from 50,000 users previously. It serves millions of searches and image generations each month.

What are Onton’s future plans?

The startup will use its new funding to launch an apparel shopping vertical. It also plans to grow its team from 10 to 15 employees. The focus is on hiring engineers and AI researchers.

Why did the company rebrand from Deft to Onton?

The original name caused confusion and made it difficult to secure a premium domain. The rebrand to Onton was completed earlier this year. This change aligns with its vision for a broader AI shopping platform.