Electric vehicle (EV) subscription service Onto has raised $175m (£126m) to expand its services in the UK.
Onto’s service aims to provide customers with access to electric cars on a subscription basis without huge deposits or any long-term commitments. Onto sees its service as one of many that are transforming the car ownership model.
Rob Jolly, chief executive at Onto, said the funding would “help more customers step into the world of EVs without being tied into long contracts or faced with large upfront costs.
“While two out of three UK drivers want their next car to be electric, the transition can be expensive and daunting. At Onto we’ve been changing the rules of the game for car ownership through our no-commitment, all-inclusive subscription service. Our focus is on providing an easy, flexible and affordable alternative, and we’re seeing huge demand,” said Jolly.
Onto used a combined equity and debt funding round to raise the funds. The funding was led by Alfvén & Didrikson on the equity raise, with Pollen Street Capital providing a senior-secured asset backed debt facility.
Existing investors ADV (Legal and General), Cerebrum Tech Limited and JamJar also participated in the equity round, alongside new investments from TotalEnergies Ventures, Vlerick Group, Dutch insurer Achmea Innovation Fund and, the family office of ex-Goldman Sachs Asset Management Chairman and Member of the House of Lords, Jim O’Neill.
Tiyam Afshari, a partner at Alfven & Didrikson, said he was thrilled by the partnership with Onto: “We are big believers in the transition from car ownership to car subscription and look forward to an exciting journey together, transforming an industry and ultimately contributing to a positive change for society,” he said.
Onto’s subscription model includes 1,000 miles per month, insurance, service and repair, and free access to more than 11,000 public EV charge points via its network of charging partners. It also has partnerships with Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger with the aim of bolstering its service offerings and giving its subscribers greater peace of mind around locating charging facilities.
In 2020 Onto launched Onto for Business which provides companies with a flexible car subscription solution for employees. With zero emission cars exempt from Benefit-In-Kind tax, both the employer and employee can take advantage of tax savings. To date over 300 businesses have vehicles via an Onto for Business subscription.
Lazard acted as financial advisors to Onto for the equity, and Deloitte for the debt. The Series B raise brings Onto’s total funding to date to $245m (£176.6m).