UK-based Onto is an all-inclusive electric car subscription service. Today, the company has announced that it has raised $175M (€148.5M) 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.
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 (approx €207.8M).
With this funding, the company claims to transform the traditional car ownership model, as it embarks on the next phase of its rapid growth.
Onto transforming traditional car ownership model
Founded in 2017 by Rob Jolly and Dannan O’Meachair, Onto helps motorists to join the EV bandwagon on a subscription basis without huge deposits or a long-term commitment. “It offers UK-wide home delivery on all its vehicles and the 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,” says the company.
Onto offers monthly subscriptions and currently offers 17 models ranging from the 2021 Volkswagen e-up! at £339 (€396.5) per month all the way up to the 2021 Audi e-Tron 55 Quattro Black Edition at £1299 (€1519.4) per month.
In order to curb charge anxiety among consumers, the company has partnered with Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger. In 2020, the UK startup launched Onto for Business, which provides companies with a flexible, no-commitment car subscription solution for their employees.
“With zero-emission cars exempt from Benefit-In-Kind tax, both the employer and employee can capitalise on tax savings. Employees have access to the same range of premium EVs with insurance, maintenance and charging included. To date over 300 businesses have vehicles via an Onto for Business subscription,” reads the press release.
Rob Jolly, CEO at Onto, says, “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.”
Use of funds
With this funding, the company claims to transform the traditional car ownership model, as it embarks on the next phase of its rapid growth. The new capital will also help Onto accelerate the expansion of its subscription model in the UK, with a view to exporting its car-as-a-service model to further afield in the future.
“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,” says Jolly.