OneText, a company developing a "text-to-buy network," recently secured $4.5 million in seed funding. Khosla Ventures and Y Combinator led the investment round. This capital supports OneText's mission to simplify online shopping through text messages.
The platform allows shoppers to complete purchases directly via text message, streamlining the traditional online checkout process. This text-to-buy network aims to eliminate friction often found in conventional e-commerce transactions. This approach offers a distinct alternative to existing e-commerce features on platforms like Instagram and WhatsApp.
OneText differentiates itself from traditional SMS marketing firms, such as Klaviyo or Attentive. The company focuses on two-way, AI-powered conversations, with human oversight. This combination improves conversion rates by 20-30%.
Expanding the Text-to-Buy Network
The startup operates its own secure wallet, integrating with a brand's existing payment processor. After an initial purchase, the system securely vaults customer payment information. Subsequent reorders then require only a single text reply, creating a "card-on-file" experience. This method avoids requiring merchants to alter their website's existing checkout flows, a common hurdle for new payment solutions. This represents significant e-commerce innovation.
Founders Jonathan Fudem and Daniel Brain, both former PayPal employees, launched OneText. The company participated in Y Combinator in 2023, quietly building its platform post-Demo Day.
The startups currently serves mid-sized e-commerce brands, generating $10 million to $100 million in annual revenue. The company also supports smaller startups and large enterprises. OneText reports scaling 3x year over year, achieving millions in revenue, validating its text-to-buy network model.
