OneText, a startup founded by ex-PayPal employees, has secured $4.5 million in seed funding to transform the online shopping experience through SMS-based checkout.
The round was led by Khosla Ventures, Coatue, Citi Ventures, Y Combinator, and Good Friends, with participation from Muse frontman Matt Bellamy.
Frictionless Buying Through Text
Unlike traditional checkout flows that often require merchants to overhaul their systems, OneText enables customers to purchase products directly via text message without disrupting the merchant’s existing e-commerce setup. CEO Jonathan Fudem said the goal is to create a “text-to-buy network” that allows consumers to complete purchases as easily as replying to a message.
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A Human-AI Hybrid Approach
OneText combines AI-powered conversations with human support to enhance engagement and boost conversions by 20–30%. Its features include cart recovery, personalized recommendations, and post-purchase upselling. The startup runs its own wallet and securely stores payment data for frictionless reordering with a single text reply.
Building a “Charge It to Your Number” Network
The platform introduces what Fudem calls “consentful automation”: for reorders, users receive a 24-hour opt-out text before a payment is processed. Over time, OneText aims to create a cross-brand, SMS-native payment network—similar to a hotel room charge system—linked to a customer’s phone number.
Currently serving mid-sized e-commerce brands generating $10M–$100M in revenue, OneText has been scaling 3x annually and generating millions in revenue. Its long-term ambition is to become the go-to platform for seamless, text-based commerce.
