OnBuy eyes major growth as it closes Series A funding round

UK-based online marketplace OnBuy has closed a £5 million Series A funding round.

This involved VC firm Fuel Ventures and also Nathalie Gaveau, the co-founder of Priceminister, a French marketplace that was acquired by Rakuten.

OnBuy's Founder and CEO, Cas Paton says: ”The injection of this additional funding not only allows us to substantially grow the operational side of the business, but it gives our team backing from phenomenal investors who can bring an array of e-commerce experience and expertise to the table, bolstering an already strong globalisation strategy.”

He adds that the venture, which launched in 2016, is “well on track to claim 3-5% of the £84 billion UK e-commerce market in the next three years, and we're aiming for 1% of the $3.46 trillion global e-commerce market, equating to $35 billion, in the next five years.”

“We're gearing up for an enormous expansion into over 140 new countries, which will allow OnBuy to become the first global marketplace and further set ourselves apart from the competition."

Mark Pearson of Fuel Ventures comments: "In recent years the VC world has largely turned its back on marketplaces. They are notoriously hard to build and even harder to grow, given that the market is dominated by some of the largest companies in the world.”

“However, it's clear from seeing OnBuy's unique model, their achievements to date and the impressive year-on-year growth that they have found the right formula for long-term success.”

"The decision to invest in OnBuy was an easy one for Fuel Ventures: it is now on the verge of becoming a serious global player, with some of the largest retailers and brands in the industry flooding to join the world's fastest-growing marketplace."