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American Focus > Blog > Tech and Science > OneText raises $4.5M from Y Combinator, Khosla to reinvent shopping by text
Tech and Science

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

Last updated: July 8, 2025 10:31 am
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OneText raises .5M from Y Combinator, Khosla to reinvent shopping by text
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The Future of Online Checkout: OneText’s Text-to-Buy Network

The online checkout experience has long been plagued by friction, with many companies offering solutions that fail to truly revolutionize the process. OneText, a company founded by former PayPal employees, is taking a different approach with its innovative “text-to-buy network,” allowing shoppers to complete purchases via text message.

Recently, OneText closed a $4 million seed round backed by prestigious investors such as Khosla Ventures, Coatue, and Y Combinator. Co-founder and CEO Jonathan Fudem conceived the idea while working on the checkout team at PayPal, recognizing the challenges that many merchants face in adopting new payment flows.

Unlike traditional checkout solutions, OneText does not require merchants to replace their existing payment systems. By leveraging SMS technology, OneText enables seamless transactions without disrupting the merchant’s website. This approach ensures a direct and personalized relationship between brands and their customers, a key differentiator from other SMS marketing companies.

OneText’s success lies in its unique combination of AI-powered conversations and human interaction, leading to a significant increase in conversions. Features like cart recovery, post-purchase upsells, and personalized recommendations enhance the overall shopping experience for customers.

Under the hood, OneText operates its own wallet system that securely stores payment information for easy reordering. This “card-on-file” setup simplifies the checkout process, akin to charging items to a hotel room during a stay.

To enhance user experience and ensure transparency, OneText employs “consentful” automation, giving customers the option to cancel a payment within 24 hours. This opt-out feature prioritizes customer control and builds trust between brands and consumers.

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Looking ahead, OneText plans to expand its network to allow customers to use their vaulted profiles across multiple brands, streamlining the checkout process and offering personalized recommendations. The company envisions a cross-brand, SMS-native payment network that revolutionizes online shopping.

Since its inception, OneText has seen tremendous growth, serving mid-sized e-commerce brands, startups, and large enterprises. Co-founder Jonathan Fudem, alongside CTO Daniel Brain, has positioned OneText as a leader in reimagining the online checkout experience.

TAGGED:4.5MCombinatorKhoslaOneTextraisesREinventShoppingText
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