OnBuy, the online marketplace billed as the UK’s rival to Amazon, has just secured a further £3m in investment from a London-based venture capital fund. The platform secured a private investment round earlier this month.
The latest round of investment came from Fuel Ventures and will be used to facilitate OnBuy’s launch into more than 20 countries by the end of the year, including the US, Canada, Australia, and the UAE.
It 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 will also be doubling its team to support this substantial expansion.
Launched in November 2016 by entrepreneur Cas Paton, OnBuy aims to deliver a marketplace that offers competitive pricing and product to consumers, but doesn’t go into direct competition with its sellers.
The platform doesn’t hold any stock or sell any of its own products, instead it invests all of its resources in growing its loyal international customer base for the benefit of its sellers.
Since its inception, OnBuy has partnered with more than 3,000 sellers, from household name brands to independent retailers, and offers more than 21 million products to 8 million customers.
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.”
Now, with the backing of Fuel Ventures and its £3m investment, OnBuy has stated that it is ‘in the most position it has ever been in.’ As a result, the company is confident of creating “head-turning” growth over the next four years.
Mark Pearson, founder of Fuel Ventures, added: “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.”