The UK-based online marketplace OnBuy has raised £35m in series A funding through a combination of venture capital and strategic technology investors.
This new funding contains investment from the likes of founder and private equity firm Terra Firma Capital Guy Hands, deputy chief executive of Klarna and founder of Play.com Richard Goulding, as well as other investors including Bring Ventures and the venture arm of Norway Post.
The ecommerce company, which was founded in 2016, has recorded growth of annualised gross merchandise value (GMV) to £155m with £8m investment to date. The platform has attracted more than 7,000 retailers who sell over 36 million products on the platform, including Microsoft, PlayStation and Adidas.
The pandemic attracted many new customers to the platform, with 25,000 new subscribers joining the site each week in 2020.
Out of the new investment, £2m will be allocated to support existing retailers currently using the platform. The online marketplace also plans to develop a mobile app for its growing customer base, as well as make improvements to product infrastructure and launch new partners.
Global ecommerce market continues to explode
Founder and chief executive Cas Paton said: “The global ecommerce market is expected to total $4.2 trillion by the end of 2021, a figure that is set to grow even more over the next few years, however it’s alarming to see that the industry is still following the same detrimental and unfair marketplace model that has existed for years. I created OnBuy to provide something unique: a clear, level playing field – and in our four years of rapid growth, it’s clear to see that this is a model that works to everyone’s advantage.
“This 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.”
Klarna deputy CEO Knut Frängsmyr said: “Having watched OnBuy for some time, I’ve continuously been impressed and inspired by how they put their customers first - buyers and sellers. In an ever-changing landscape, sometimes simplicity and fairness will prevail. The growth opportunities ahead for OnBuy and the team are tremendous, and I am thrilled to be invited to join this journey.”
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