Conversation with … Cas Paton, Founder OnBuy
It’s been eighteen months since my last chat with the Cas, founder of OnBuy. Since then, the marketplace has undergone an extraordinary transformation. In this interview, we discuss navigating the challenges of the post-COVID economy, scaling internationally, embracing AI, and staying true to the company’s mission of delivering value to both customers and sellers.
Notably, OnBuy has established itself as the world’s first cashback marketplace, setting a new standard in customer rewards and loyalty.
It sounds like you’ve had a busy few years. What have been the major milestones since we last spoke?
It’s been an interesting journey, especially following COVID. At the end of 2021, we saw the economic environment shift significantly. The startup world changed – losing money stopped being acceptable, and the era of growth-at-all-costs came to an end. While we had never fully embraced that approach, as a VC-funded business we had started to adopt some elements of it. The shifting landscape was a catalyst for us to double down on building a sustainable and efficient model.
In 2022 and 2023, we re-engineered almost everything: our operations, how we process funds, manage sellers, and hold cash. It was transformative. By late 2023, we hit profitability for the first time. Then, in May 2024, we became sustainably profitable and have remained so every month since. Considering that in 2022 we were losing £800,000 a month, it’s a huge achievement!
Impressive Cas – tell us, how did you achieve that kind of transformation?
A big part of it was focusing on the right sellers and products. We became more selective, driving efficiencies across the board. One of our standout innovations was launching the world’s first cashback marketplace. Unlike traditional cashback models, ours makes the cashback available to customers the moment they place an order, it’s real money they can use immediately, even before their goods have shipped.
By late 2024, we’d introduced a VIP scheme with double cashback, invested millions in cloud migration with Google, and scaled into 12 European countries. This year, we’re expanding into the US – our biggest move yet.
AI seems to play a big role in your plans. How are you using it?
AI is a huge focus for us this year. We’ve already implemented some cutting-edge features, like automated product categorisation. For sellers, this removes a significant onboarding hurdle. Traditionally, marketplaces require sellers to manually map their products to categories, sometimes taking days or weeks. With AI, we handle that for them in seconds.
We’re also using AI for risk analysis, improving seller performance, and enhancing customer experiences. But our approach is grounded in commercial reality—we’re not just an “AI-first” marketplace. We’re a live, revenue-generating business using AI to advance our product and solve specific problems.
For example, one exciting development is sentiment-based search. Customers don’t always shop based on tangible product features – they’re often looking for recommendations that align with their needs. Imagine you’re a runner looking for trainers specifically suited for long-distance marathons. Instead of wading through hundreds of running shoes, our sentiment-based AI can narrow it down to the best options for your specific need – something that currently requires hours of third-party research.
AI shopping assistants seem to be everywhere. Are you planning to use them?
Not yet, and that’s deliberate. While AI is transforming many aspects of our operations, we’ve intentionally focused on solving back-end challenges first like automated categorisation and risk analysis. Features like AI-powered shopping assistants or bots are on the roadmap, but only once we’ve perfected the seller and customer fundamentals. It’s all about ensuring both sides of the marketplace are robust before adding additional layers.
You’ve already expanded into Europe and are about to launch in the US. What’s the global strategy?
We now operate in 13 countries, with the US becoming our 14th this April or May. Our European expansion has been strategically managed from the UK, with satellite offices planned for business development. The US is a big play for us. We aim to double our business size by mid-2026 just from the US market.
Despite our growth, we’ve maintained a lean team of around 100 people, leveraging technology to stay efficient. For high-intensity projects, we use what we call “burst” solutions – either contractors or tech-driven solutions – to meet short-term needs. This allows us to scale effectively without bloating our workforce.
Even with AI, we ensure there’s always a human touch. While AI is powerful, it’s not perfect, so we’ve retrained staff to work alongside it, ensuring accuracy and accountability.
You’ve been incredibly successful. What’s been the key to that success for both you and OnBuy?
For me, it’s about execution. Ideas are great, but if you don’t deliver, people lose faith. I’ve built a culture of relentless execution. Getting things done every week, every month. It’s a high-pressure environment, but it works.
For OnBuy, it’s about dependability. We’ve consistently delivered on our growth plans, even when people doubted us. From taking a slice of the UK market to becoming profitable, we’ve proven ourselves. Sellers see that we’re not just a flash in the pan—we’re here for the long haul.
We’ve also been very clear about our mission: delivering value to customers and sellers. For customers, that means creating tools like cashback and sentiment-driven shopping to make their experience better. For sellers, it’s about building a credible, profitable channel they can rely on.
What’s next for OnBuy?
We’re just getting started. I still say we’re on the ground floor of what’s possible. Commerce is an enormous market, and we’ve only scratched the surface.
Our mission is simple: to deliver value directly to customers. OnBuy isn’t just a marketplace, it’s a platform that rewards loyalty and puts real money back into our users’ pockets. If there are retailers out there looking for a new opportunity, OnBuy is ready to deliver immediate incremental sales.
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Cas’s vision for OnBuy is nothing short of ambitious. From building the world’s first cashback marketplace to leveraging AI in innovative, practical ways, the company is setting a new standard in e-commerce. With a lean, efficient team and a commitment to rewarding both customers and sellers, OnBuy is poised to redefine how marketplaces operate globally. As they scale into the US and expand their AI capabilities, this is a business to watch for anyone invested in the future of commerce.
