UK-based OnBuy.com, an online marketplace is edging closer to achieving unicorn status with a valuation of $1B (nearly £750M). The company works with the mission to revolutionise the e-commerce industry with a fair, transparent, and ethical marketplace that benefits both sellers and buyers. It has announced 605% year-to-date growth, which rounds off a list of 2020 successes for the company.
Founded in 2016 by Cas Paton, OnBuy.com is already valued at £180M. After having achieved over 600% growth for the third consecutive year in 2020, the online marketplace is focusing on gaining market share.
OnBuy’s founder and CEO, Cas Paton, was awarded Founder of the Year 2020 by online media publication Just Entrepreneurs this month. Paton commented: “This year alone, we have seen sales on OnBuy soar from a run rate of £24 million to over £170M. 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.”
This meteoric growth has been possible for OnBuy through a slew of achievements detailed below.
Series A funding round
One of the accomplishments of OnBuy is the £5M Series A funding round in June. The round was led by leading Fuel Ventures, a London-based VC firm along with participation from other investors including Nathalie Gaveau, the co-founder of Priceminister.
OnBuy investor Mark Pearson, CEO of Fuel Ventures, commented: “It’s evident that OnBuy is on track to achieve further impressive successes in the coming years. Its accomplishments to date and year-on-year growth are remarkable. Cas and his team are beating targets and smashing their own records by the week. We are proud to be involved with such a dynamic brand and are looking forward to seeing OnBuy becoming a serious global player.”
With this investment, the UK-based e-commerce company started an aggressive global expansion plan to expand to over 140 countries by the end of 2023.
Growth during Black Friday sale
OnBuy launched its first-ever major national TV advertising campaign with ITV. This coincided with Black Friday and the Christmas celebrations. The company achieved a recording-breaking Black Friday sale with £2.5M in sales, which boosted the company’s year-on-year sales revenue by 870% in just one month. This was possible with OnBuy’s price drop on every single product across the marketplace sans any additional cost to its sellers. Also, the company reduced its fees for sellers over Black Friday and Cyber Monday providing over £50M in savings.
In order to accommodate such rapid growth, the e-commerce business has quadrupled its workforce and appoints over 60 full-time staff members. OnBuy also announced plans to expand its offices into Manchester next year, which will create another 100 jobs over the next two years on time for its global expansion.