OnBuy.com raises £35m in latest funding round
UK-based online marketplace OnBuy.com has raised £35 million in series A+ funding through VC and strategic technology investors. This will enable it “to further develop its product offering for both sellers and consumers and importantly, pursue global expansion”.
In the 12-24 months ahead, it will develop a consumer app, make improvements to the product infrastructure and launch new partnerships.
The business generates £155 million annually in Gross Merchandise Value and has operated with only £8 million of investment until now. The new money, which will be a mix of debt and equity, “will fuel further meteoric growth for OnBuy, with sights firmly set on reaching unicorn status in the coming years.”
It said significant investment has come from Bring Ventures, Norway Post venture arm, Fuel Ventures, Guy Hands (founder and chairman of Terra Firma Capital Partners), Knut Frängsmyr (deputy CEO of Klarna) and Richard Goulding (founder of Play.com), among others.
In addition to external investment, a fully funded £2 million allocation was set aside for retailers currently using the platform.
The almost-five-year-old company is a “pure online marketplace that doesn't compete with retailers” and said its aim is to create a “level playing field” in online retail. It has attracted more than 7,000 retailers, hosting over 36 million products on the platform.
Cas Paton, founder and CEO of OnBuy, said: "The global e-commerce market is expected to total $4.2 trillion by the end of 2021, a figure that is set to grow even more over the next few years, however it's alarming to see that the industry is still following the same detrimental and unfair marketplace model that has existed for years. I created OnBuy to provide something unique: a clear, level playing field – and in our four years of rapid growth, it's clear to see that this is a model that works to everyone's advantage.
“This investment will allow us to unlock even more potential and take OnBuy to the next level with an even better, easier to use product than ever before. We've made it this far with the help of our early angels, amazing team, trusted retailers and of course all of our amazing customers, but we're not nearly done yet. We're here to make noise, challenge the status quo and change the digital marketplace landscape forever.”
Meanwhile, the investors participating in its latest round described it has having “a very promising future ahead” with “tremendous” growth opportunities.
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