Online marketplace OnBuy secures 35 million pounds in funding

UK-based online marketplace OnBuy has raised 35 million pounds in series A+ funding through venture capital and strategic technology investors.

The company said the investment, which is a mix of debt and equity, will enable it to further develop its product offering and pursue global expansion.

It said significant input came from Bring Ventures; Norway Post venture arm; Fuel Ventures; Guy Hands, the founder and chairman of Terra Firma Capital Partners; Knut Frängsmyr, the deputy CEO of Klarna; and Richard Goulding, the founder of Play.com.

A fully funded 2 million pound allocation was also set aside for existing retailers currently using the platform.

The Bournemouth-based business was founded in 2016 and sells over 36 million products from more than 7,000 retailers, with categories spanning fashion, gardening, electronics and furniture.

OnBuy eyes unicorn status

The fast-growing business has been profiting from the increasing consumer shift to online channels in recent years, with its gross merchandise value reaching 155 million pounds in just four years, with only 8 million pounds in total investment until now.

The company said its sights are now “firmly set on reaching unicorn status in the coming years”.

OnBuy founder and CEO Cas Paton said the 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”.

The company said in the coming two years it will make announcements about the development of a consumer app, improvements to its product infrastructure, the launch of new partnerships and further details of a global expansion.

Paton continued: “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.”