The online marketplace, OnBuy.com is edging ever closer to achieving unicorn status as the UK’s ‘answer to eBay and Amazon’ reveals a 605 per cent year to date growth to round off “a list of incredible 2020 successes” for the business.
OnBuy has made no secret of its mission to revolutionise the eCommerce sector by providing online sellers with an alternative to the current market behemoths. The firm now has its sights on reaching unicorn status, one which is awarded to privately held start-ups valued at over $1 billion, within the next two years.
The business is already valued at an estimated £180 million after launching only four years ago, having achieved its third consecutive year of over 600 per cent growth in 2020.
OnBuy’s founder and CEO, Cas Paton, who was awarded Founder of the Year 2020 by online media publication Just Entrepreneurs this month, commented: “Securing unicorn status is not an easy feat, but our success so far proves it’s well within our grasp. In January 2020, our business was valued at £6.5 million ($9 million), but by March, within only three months, OnBuy was valued at £14 million ($18 million).
“More recently, OnBuy has been valued at over £180 million ($240 million), and so if we continue on this trajectory as we anticipate, the sky really is the limit.
“This year alone, we have seen sales on OnBuy soar from a run rate of £24 million to over £170 million. We’ve accomplished so much in the UK that I am entirely confident that unicorn status is within reach, especially as we are already underway with our global scale up that’ll take OnBuy into over 140 countries before year-end 2023.”
Alongside its growth, in the past 12 months OnBuy has beta-tested territory specific sites in 42 countries for expansion, secured £5m in its Series A funding, increased its seller base by 10 per cent, achieved £2.5 million in sales for its sellers on Black Friday alone, and scaled the OnBuy team by over 40 per cent.
On top of that, it won the UK Business Tech Awards’ eCommerce Company of the Year award and Retail Without Borders’ Marketplace 2020 award.
Paton added: “We’ve grown quickly over the last four years, but 2020 has skyrocketed OnBuy’s expansion and we’re now growing at a phenomenal rate. We’re shaking up the status quo in the eCommerce industry with our fair, transparent and ethical model, and this year’s success demonstrates how strong the demand for a marketplace like OnBuy is.
“With 600-plus sellers onboarded each month this year, we’re on track to claim around five percent of the £84bn UK eCommerce market in the next three years. We’re aiming for one percent of the $3.46 trillion global eCommerce market in the next five years alongside that.”
OnBuy also launched its first major national TV advertising campaign with ITV to coincide with Black Friday and the busy Christmas period, supporting its sellers during 2020’s key trading period.
A successful November, helped by a recording-breaking Black Friday with £2.5 million in sales, boosted the company’s year-on-year sales revenue by 870 per cent in one month alone.