OneText Secures $4.5M From YC & Khosla to Revolutionize Text Shopping
▼ Summary
– OneText is a startup building a “text-to-buy network” that enables purchases via SMS, aiming to simplify the online checkout process.
– The company raised $4.5 million in seed funding from notable investors, including Khosla Ventures and Y Combinator, and was founded by ex-PayPal employees.
– OneText avoids requiring merchants to replace existing checkout systems by using SMS, focusing on direct customer-brand relationships instead of mass marketing.
– The platform uses AI and human oversight to boost conversions by 20–30% through features like cart recovery and personalized recommendations.
– OneText plans to expand into a cross-brand SMS payment network, allowing shoppers to use stored payment profiles across multiple merchants.
OneText has raised $4.5 million in seed funding to transform online shopping by enabling purchases through simple text messages. Backed by prominent investors like Khosla Ventures, Y Combinator, and Citi Ventures, the startup aims to eliminate the friction of traditional checkout processes. Founded by former PayPal employees, OneText’s innovative approach allows shoppers to buy products without navigating complex payment flows or switching platforms.
The idea emerged when co-founder Jonathan Fudem noticed a recurring challenge while working at PayPal, merchants often struggled to adopt new checkout systems due to limitations imposed by their e-commerce providers. OneText bypasses this hurdle by integrating seamlessly with existing platforms, using SMS as the primary medium for transactions. Unlike generic SMS marketing, which relies on mass blasts, the company focuses on personalized, two-way conversations powered by AI and human oversight to boost conversion rates by 20-30%.
Key features include cart recovery, post-purchase upsells, and tailored recommendations, all designed to enhance the shopping experience. OneText stores payment details securely after the first purchase, allowing customers to reorder with a single text reply. This “card-on-file” model mirrors the convenience of charging items to a hotel room, making repeat purchases effortless.
The platform employs what Fudem describes as “consentful automation.” Before processing a reorder payment, customers receive a notification with an option to cancel within 24 hours. This opt-out approach ensures transparency while maintaining ease of use. Looking ahead, OneText plans to expand its network, enabling shoppers to use their stored profiles across multiple brands for faster checkouts and smarter recommendations.
Currently serving mid-sized e-commerce businesses generating $10M–$100M annually, OneText has seen rapid growth, scaling revenue threefold year-over-year. The long-term vision is to create a universal, SMS-based payment network that redefines how consumers interact with brands. As Fudem puts it, “We’re bringing the ‘charge it to your room’ experience to your phone number, that’s the future of commerce.”
After participating in Y Combinator’s 2023 cohort, the company has quietly refined its platform, attracting a diverse clientele from startups to large enterprises. With this fresh funding, OneText is poised to accelerate its mission of making shopping as simple as sending a text.
(Source: TechCrunch)
