OneText raises $4.5M from Y Combinator, Khosla to reinvent shopping by text

Typical online payment experience is swollen with friction. More companies are built solutions around online verification, few people reconsider him from scratch. Such a company is a company that buyers call a “text buyer network” that allows you to buy with a text message.

The company founded by the former PayPal employees is supported by the fund created by companies, containers, containers, citi ventures, Y Citi Ventures, Y Cathinator, Juvors, Allbirds and Harry’s founders.

Joint founder and CEO Jonathan Fudem, came to the opinion while working on the inspection team in Paypal. There, Slick UX saw that many rise in the same departure barrier: convincing merchants to convincing merchants to change the existing payment streams.

“This is a toughest pitch,” Fudem said he did not have the freedom to choose the inspection provider of many merchants; It is often decided with the e-commerce platform.

Using SMS does not require a merchant to replace the onetext website. Although large platforms in Instagram and WhatsApp also have e-commerce features, fudem stamps still think that brands need directly, related relationships with customers.

SMS, which is well known for OnEtech, mass, identity messaging and spam connections, looks like an opponent to SMS marketing companies.

Instead, it uses the combination of tools – the EU-developed two-sided conversations and people in the loop, to increase conversions 20-30%. Restoration of bases, special recommendations for post-procurement rises and shopping helps this performance meaningfully.

Under the hood, OnEtech manages its wallet connecting the brand with an existing process to complete the transactions. OnEtecht is a securely tonqual of customer’s payment information after the first purchase. They can resubmit again with an answer from that time.

This “card-on-file” device, Onetech believes that in a room in a room during a hotel.

To do this, OneText uses what Fudem called Fudem’s automation. If a brand wants to charge for a customer for a customer, Onetext sends a text that says the customer will pass the payment within 24 hours. Refuses to default.

Over time, it is planned to expand the network so that buyers can use toned profiles between multiple-filled inspection data and more easy recommendations.

In this sense, the company causes something greater: cross brand, SMS-native payment network.

“It’s really hard to build a consumer-faced wallet that is better than 10x,” Fudem said. “But the ‘download to your room’ can create a consumer text writing platform for a business that brings the experience, only now it is your phone number. We will build the network.”

OnEnTecht passed the Y Moker in 2023 and quietly sets his platform silently after the demo day. Today, the platform has a medium-sized e-commerce brands of medium-sized e-commerce brands, more than $ 100 million, like customers, fudem, smaller and large enterprises.

“We have expanded the 3x years in the year and we have won our revenues in the year,” said CTO Daniel brain.