Electric car subscription service Onto raises $175m Series B funding
All-inclusive electric vehicle (EV) subscription service Onto has raised $175m to transform the traditional car ownership model, in a combined equity and debt Series B funding round led by Alfvén & Didrikson on the equity raise, and with Pollen Street Capital providing a senior-secured asset backed debt facility.
The investment comes as the UK-based sustainable mobility business, which enables customers to access an electric car on a subscription basis without huge deposits or a long-term commitment, embarks on the next phase of its rapid growth.
With the rise of the subscription economy and growing demand for green transport options post-COVID, the new capital will help Onto accelerate the expansion of its popular subscription model in the UK, with a view to exporting its innovative car-as-a-service model to further afield in the future.
Existing investors ADV (Legal and General), Cerebrum Tech Limited and JamJar also participated in the oversubscribed 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.
Lazard acted as financial advisor to Onto. Pollen Street Capital supported the round with a senior-secured asset backed debt facility. The Series B raise brings Onto’s total funding to date to $245m.
Rob Jolly, CEO at Onto, said: “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. This funding will allow us to further expand our operations in the UK and help more customers step into the world of EVs without being tied into long contracts or faced with large upfront costs”