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

In a landscape where major tech giants are integrating AI into the shopping process, Onton is making significant strides in the realm of product discovery. Previously known as Deft, this AI-powered shopping platform has seen its monthly active user count skyrocket from 50,000 to over 2 million, reflecting a growing reliance on AI for purchasing decisions. To support its expansion efforts into new product categories, Onton has successfully raised $7.5 million in a funding round led by Footwork, with contributions from Liquid 2, Parable Ventures, and others. This latest investment brings the company's total funding to approximately $10 million. The startup plans to leverage these funds to branch out beyond furniture into apparel and consumer electronics. Co-founder Zack Hudson highlighted the challenges that big language models (LLMs) face in e-commerce, particularly regarding consumer purchase timelines, which have lengthened. Onton's unique neuro-symbolic architecture aims to mitigate these issues, eliminating the common problem of AI hallucination and enhancing the accuracy of search results. This advanced approach allows the platform to interpret real-world information that may not be explicitly stated in product descriptions. For instance, when searching for pet-friendly furniture, Onton's tools can discern that polyester offers increased stain and scratch resistance, making it a more suitable choice for pet owners. This intelligence is continuously refined as the AI learns from user interactions, improving its recommendations over time. Onton is also enhancing user engagement by providing multiple input methods for product searches. Users can upload images or requests to visualize their desired home or office setups, allowing Onton to suggest appropriate furniture. Additionally, the platform features an infinite canvas for image generation, enabling users to combine their own images with products for ideation. The startup claims to convert customers at rates 3-5 times higher than traditional e-commerce platforms, thanks to the reliability of its underlying data. With plans to expand its team from 10 to 15 employees, Onton is gearing up for its new apparel category launch amid competition from other startups like Daydream and Aesthetic. As Onton continues to innovate and refine its technology, the future looks promising for this pioneering shopping platform.