The world's fastest-growing marketplace has secured £3.3 million in venture capital funding after closing a private investment round earlier this week.
The funding will power OnBuy's launch into 42 countries, including the USA, Canada, Australia and the UAE, by the end of 2020.
The investment will be used to generate growth through expansion overseas, increased brand awareness and the development of new solutions, integrations and features across the platform. OnBuy has doubled its workforce to support its exponential growth and fuel its launch overseas, including the hire of a new head of marketing, Josh Brooks, and an SEO manager, Arvid Linde.
Since its launch in late 2016, OnBuy has grown exponentially, now with many millions of products, thousands of sellers and millions of buyers. OnBuy was created to address a gap in the market for a marketplace that doesn't directly compete with its sellers, and in doing so can offer buyers a better experience through competitive pricing and a broader product range.
Having recently been crowned the fastest-growing company in the UK and the fastest-growing marketplace in the world in a report by SimilarWeb, OnBuy has continued its exponential growth despite the current pandemic. OnBuy recently launched major updates to the platform in order to drive more traffic, secure more sales and improve processes to enhance operational performance without additional cost. Through these internal improvements, the marketplace grew disproportionately compared to other eCommerce sites, achieving 6x growth in just 3 months.
Following the initial announcement, Cas Paton, founder and managing director of OnBuy, said,
"OnBuy is a unique platform for sellers - we are an ethical marketplace, we are transparent, and we are trustworthy. I've dealt with many eCommerce sellers throughout my business career, and would always hear how tired they were of the way marketplaces like Amazon operated; how they'd compete directly with their own sellers and favour their own products in search results, even if they're more expensive. The popular marketplace model of retailing your own products and allowing other sellers to sell - one that favours the marketplace itself, rather than its retailers - is flawed. The result is that sellers miss out on sales, while customers get less choice and higher prices.
OnBuy was born out of a belief that by being fair and transparent, we could create a better experience for both sellers and buyers; we wanted to do things differently and improve the marketplace landscape. We've created a marketplace that puts its buyers and sellers first, and now we're giving the likes of Amazon a run for their money. We have an extremely efficient, scalable and sustainable business model, and the best technical framework to back it up, which is why we've achieved this level of success compared to some of our competitors raising upwards of £20 million. OnBuy has results-focused algorithms for marketing and growth, allowing us to scale quickly at a lower cost.
With the backing of Fuel Ventures, we're in the strongest and most exciting position we've ever been in. We're delighted to have secured this investment, and we're looking forward to creating immense head-turning growth over the next four years, including growing our team, expanding our reach and increasing our loyal customer base."
Mark Pearson, founder of Fuel Ventures, commented,
"As a fund of entrepreneurs for entrepreneurs, we have extensive experience in the eCommerce industry and only invest in companies that we feel have extraordinary potential for growth and scale, so investing in OnBuy was an obvious choice for Fuel Ventures. It's a marketplace that values the seller just as much as the customer, which gives it a real USP as that has been historically overlooked by competitors.
After seeing the company's impressive growth to date, it's apparent that OnBuy is destined to become a global player in the eCommerce marketplace world. We're thrilled to be a part of this journey and can't wait to share OnBuy's great achievements over the next few years."