The rise of AI-powered shopping is accelerating, with startups like Onton leading the charge. The company just raised $7.5 million to expand its platform, which uses artificial intelligence to help consumers find products more efficiently. This funding round, led by Footwork, brings Onton’s total funding to roughly $10 million.
From Furniture to Everything Else
Onton initially focused on furniture, but now aims to branch into apparel and eventually consumer electronics. The company has already seen massive growth in user engagement, jumping from 50,000 monthly active users to over 2 million. This surge in demand underscores a clear trend: consumers are increasingly relying on AI to guide their shopping decisions.
The company’s expansion makes sense given the broader landscape. Tech giants like OpenAI, Google, and Amazon are also heavily investing in AI shopping tools, recognizing the potential to reshape e-commerce. Other startups like Perplexity, Daydream, and Cherry are also carving out niches in the AI-driven product discovery space.
How Onton Stands Out: Neuro-Symbolic AI
Onton’s tech isn’t just another large language model (LLM). It leverages a “neuro-symbolic” approach to provide more reliable results. Unlike traditional LLMs prone to “hallucinations,” Onton’s system combines the strengths of both neural networks and symbolic reasoning.
According to co-founder Zach Hudson, this means the AI can draw on real-world knowledge beyond product descriptions. For instance, it can identify that polyester furniture is more pet-friendly because of its stain resistance—insights not always explicitly stated by retailers. This ability to learn from data and context is a key differentiator.
Beyond Chat: Visual Search and Infinite Ideation
Onton doesn’t limit itself to chatbot-style interactions. Users can upload images or prompts to generate ideas for their home or office setups. The platform’s “infinite canvas” allows for image-based ideation, letting users combine existing pictures with products they find.
The company believes these features will help consumers discover what they want, even if they struggle to describe it verbally. Early results suggest this approach is working : Onton claims 3–5x higher conversion rates compared to traditional e-commerce sites.
The Road Ahead: Competition and Growth
The move into apparel will pit Onton against established players like Daydream, Aesthetic, and Style.ai. However, the company’s interface changes and technological improvements should give it an edge. The startup has doubled its team from three to ten employees and plans to reach 15 with further engineering and research hires.
Onton’s growth demonstrates a clear shift in consumer behavior: people are embracing AI not just for convenience but also for more informed, data-driven shopping decisions. The company’s expansion into new categories will test its capabilities but also position it at the forefront of this evolving market.
