Onto raises £100 mn to continue EV subscriptions
Electric car subscription service Onto raises £100 million (nearly €114 mn) from global investment group CDPQ and asset manager Pollen Street. This will enable Onto to expand the UK fleet; however, internationalisation appears to be on the back burner.
The company writes that the £100 million asset-backed facility announced today will enable Onto to continue expanding its UK fleet with the latest electric car models. Founded in 2018, the company now runs over 7,000 cars in the UK as a subscription model.
Pollen Street has been a finance partner to Onto since July 2021 and says the partner has since doubled the size of its electric car fleet, which now includes 25 different car models. Onto has raised £340 million in equity and debt, most recently completing its £45 million Series C raise.
When reporting the latest round in July 2022, Onto had plans to expand to Germany and other markets starting this year. However, today’s news did not confirm any move of this kind. Rob Jolly, Onto CEO & Co-Founder, only said the renewed funding would “turbocharger their UK growth plans and “consolidate our position as the leading electric car subscription service”.
Onto’s monthly subscription model includes free electric car delivery, 1,000 miles per month, insurance, service and repair, and access to more than 12,000 public EV charge points via charging partners. The latter include Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger. Subscriptions start from £499 or £399 for an Onto-branded Fiat 500 and run on a rolling monthly contract.
Apart from the 7,000 active subscribers in the UK, Onto says around 300 businesses also signed up for its B2B service Onto for Business. Employees have access to the same EV range, with insurance, maintenance and charging included.
The funding today also represents a new partnership between Pollen Street and CDPQ.
Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ, said: “Building on the experience of investing in other asset-backed platforms by our Capital Solutions team, this financing will support Onto’s growing EV fleet.”
In 2022, Deloitte recognised Onto as the fourth fastest-growing UK tech business in its Fast 50 list.