Startup News: Top Tips and Lessons from Onton’s $7.5M Boost to Expand AI Shopping Platform Beyond Furniture

Onton raises $7.5M to grow its AI-powered shopping platform, expanding beyond furniture into apparel and electronics. Discover smarter, faster product searches!

F/MS BLOG - Startup News: Top Tips and Lessons from Onton’s $7.5M Boost to Expand AI Shopping Platform Beyond Furniture (F/MS Europe, Onton raises $7.5M to expand its AI-powered shopping site beyond furniture)

Onton, the rapidly growing AI-powered shopping platform, has raised $7.5 million in a funding round led by Footwork, joined by other notable investors such as Liquid 2 and Parable Ventures. The investment marks a pivotal moment for the startup as it sets its sights on expanding beyond its initial niche in furniture into broader categories such as apparel and consumer electronics. The buzz around Onton aligns perfectly with the ongoing wave in the AI commerce sector, and as a serial entrepreneur with years of experience across disciplines, I find their approach not just innovative but a potential game-changer.


Onton’s Recipe for Success: Unlocking New Verticals

When Onton first launched (under the previous branding "Deft"), the AI-driven platform focused solely on the furniture market, helping users design their spaces by leveraging tools like image generation, personalized search recommendations, and neuro-symbolic AI , a technological mix rarely seen in startups of its scale. Since then, their user base has grown exponentially, jumping from 50,000 active monthly users in 2023 to over 2 million in 2025, a testament to the growing appetite for refined product search experiences.

Onton plans to channel its recent funds into expanding the scope of its services to apparel and consumer electronics. Given the nuances of style preferences in fashion and complex decision-making involved in electronics purchase, the AI backbone is expected to play a crucial role in filtering options, generating custom suggestions, and improving customer satisfaction. Onton’s approach could potentially disrupt traditional e-commerce models, where keyword-based search often limits user experience.


The AI Advantage: Neuro-Symbolic Architecture in Action

Onton’s technical edge lies in its neuro-symbolic AI, which aims to blend the creativity of neural networks with the logical, structured thinking of symbolic AI. Unlike standard chatbots or predictive text solutions that rely primarily on algorithmic guessing, Onton’s AI understands nuances like preferences for specific materials or search behavior patterns over time.

For example:

  • Consumers uploading a photo of their living room can receive personalized recommendations on furniture items perfectly suited to the setup.
  • Apparel shoppers looking to assemble a wardrobe can use image-based search prompts or describe custom styles, and Onton generates visually aligned suggestions.

This level of depth is precisely why Onton CEO Zach Hudson emphasizes that their platform is more than a shopping service, it’s a decision-making assistant. This claim is not limited to furniture or fashion, it foreshadows Onton’s bigger ambitions and further innovations in consumer electronics shopping.

As somebody with experience in UI/UX optimization and game design methodologies, I find their multimodal interface particularly compelling. It caters to various user input types, text prompts, photos, image combinations, and transforms them into actionable discovery experiences. Learn more about Onton’s interface on its TechCrunch feature.


Onton isn’t alone in the race to revolutionize e-commerce. Giants like OpenAI and Amazon are pouring resources into building AI assistant tools for shopping. Emerging startups such as Cherry, which focuses on image-based recommendations, and Aesthetic, touted as “Shazam for fashion shopping,” are also gaining momentum.

What sets Onton apart is its insistence on enabling trustworthy interactions. Instead of relying on keyword-based algorithms, Onton’s neuro-symbolic model ensures that its recommendations are grounded, reducing risks like algorithmic hallucinations that plague pure neural network models. Compared to competitors focusing on flashy image-based searches or chatbots, Onton prioritizes logical relevance.

Additionally, Onton’s commercial success is rapidly growing. According to a report on AI startups, Onton boasts 3–5x better conversion rates compared to standard e-commerce stores. High conversions paired with an expanding product catalog could make Onton one of the most sought-after AI commerce platforms globally.


How Entrepreneurs Can Learn from Onton

For business owners exploring similar verticals or building decision-making platforms, Onton’s journey offers invaluable lessons. Here’s my breakdown:

1. Prioritize Unmet Consumer Needs

From its inception, Onton zeroed in on challenges in e-commerce where search results often failed to match consumer expectations. Entrepreneurs should focus on pain points that "big players" overlook.

2. Versatility of Multimodal Input

Onton has made input options dynamic, anything from typed queries to visual uploads are part of the discovery process. If you’re building an AI product, ensure users are not confined to preset interaction patterns.

3. AI Beyond Hyperbole

Trustworthiness sets Onton apart from chatbot-heavy solutions. As entrepreneurs, it’s not enough to add AI for marketing value; it must substantively improve customer experience. Neuro-symbolic models are worth exploring for startups eyeing similar technical depths.

4. Fund Your Vision Intelligently

Onton’s funding strategy included specialized firms like Footwork that offer sector-specific expertise beyond financial aid. Selecting suitable investors who align with your vision can amplify business growth significantly. Check out Urban Innovation Fund or Parable Ventures as examples of forward-thinking VC firms.


Common Pitfalls to Avoid in AI Commerce Startups

While Onton’s rapid rise seems inspiring, challenges in AI-powered commerce are numerous:

  • Over-Reliance on Data: Without dynamic data validation, decisions risk short-term relevance. Entrepreneurs must monitor feedback loops for long-term algorithm scalability.
  • Ignoring UX Customization: Platforms must never assume all users want the same interface or experience. Omnichannel inputs paired with emotional intelligence are the keys to success.
  • Underestimating Market Complexity: Different e-commerce categories (e.g., fashion vs. furniture) will have unique AI training parameters. Onton approaches this intentionally, an approach worth replicating.

Conclusion: Why Onton’s Expansion Matters to Business Owners

Onton epitomizes how AI isn’t just a tool, it’s the future of streamlined, consumer-focused strategies. For entrepreneurs, the lessons go beyond AI applications; user-first design, leveraging emerging tech intelligently, and scaling thoughtfully are crucial.

With $7.5 million in funding powering its expansion, Onton is staking its claim as not just an AI player, but as a transformative force in the shopping sector. For those building e-commerce ventures, Onton’s strategic priorities, trust, precision, and user experience, are a blueprint for sustainable innovation.

Stay tuned for Onton’s next moves as the platform ventures into apparel and electronics. Explore the finer points of their funding and strategy in TechCrunch’s coverage.

Let’s hear your thoughts: Could Onton’s neuro-symbolic AI be tempting enough to disrupt giants like Amazon? Share your insights!

FAQ

1. Who led the $7.5M funding round for Onton?
The funding round for Onton was led by Footwork, with participation from Liquid 2, Parable Ventures, and 43. Read about Onton’s funding

2. What sectors is Onton expanding into?
Onton is expanding from furniture into apparel and consumer electronics to offer diversified AI-powered shopping experiences. Learn about Onton’s expansion

3. How has Onton’s user growth progressed?
Onton grew from 50,000 monthly users in 2023 to over 2 million monthly active users in 2025. Check out Onton’s growth stats

4. What is Onton’s AI technology based on?
Onton uses neuro-symbolic AI, blending neural network creativity with symbolic logical reasoning to improve product recommendations. Explore Onton’s technology

5. How does Onton enhance its search interface?
Onton employs multimodal input, allowing shoppers to use text prompts, uploaded photos, or image combinations for precise searches. Learn about Onton’s interface

6. What are Onton’s plans for disrupting e-commerce?
Onton aims to replace restrictive keyword-based search with more intelligent, nuanced AI-powered suggestions, enhancing user satisfaction. Understand Onton’s disruption strategy

7. Who are Onton’s main competitors in the AI shopping space?
Onton faces competition from platforms like OpenAI, Amazon, Cherry, and Aesthetic, focusing on advanced AI search and discovery. Learn about AI shopping competitors

8. How does Onton benefit users looking for furniture or apparel?
Onton’s AI generates tailored recommendations, like furniture suited to specific setups or apparel combining uploaded styles. Explore Onton’s user benefits

9. What conversion rates does Onton achieve?
Onton’s AI reportedly delivers conversion rates 3–5x higher than standard e-commerce stores. Read about Onton’s success metrics

10. What lessons can entrepreneurs learn from Onton’s success?
Entrepreneurs can prioritize unmet consumer needs, build versatile AI interfaces, and fund their vision intelligently to scale their startups. Understand entrepreneurial lessons from Onton

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.

Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain

Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.

CAD Sector:

  • Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
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  • Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.

IP Protection:

  • Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
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  • Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
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Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.

For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.

About the Publication

Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.

Mission and Purpose

Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.

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