Onto is reimagining car ownership, encouraging a shift towards electric vehicles and a flexible subscription-based solution. The UK-based startup has just secured about €113 million (£100 million) in a credit funding line as demand for its service grows.
The move towards more sustainable, more flexible and more eco-friendly mobility options is picking up pace across Europe. Now, consumers are increasingly looking for solutions that give them access to electric vehicles – but in the wake of financial uncertainty, they don’t want big up-front payments or costly commitments. Electric vehicles are popular, people want to drive them, and they’re better for the environment. The problem is in creating equal access to them.
That’s what UK-based startup Onto is working to achieve with its electric car subscription service. It’s a startup tapping into growing trends and habits, namely the subscription economy and sustainable mobility and it’s growing fast. Now, the company has just raised a new credit facility to boost its growth.
Funding details
- €113 million raised via a credit facility
- Credit line comes from CDPQ and Pollen Street
- Builds on a €59 million Series C raise closed in the summer of 2022
Founded in 2018 by Rob Jolly and Dannan O’Meachair, Onto provides an accessible, flexible and simple way for motorists to take the electric vehicle driving wheel by reimagining car ownership.
Rob Jolly, Onto CEO & Co-Founder, said: “We’re grateful for the support of Pollen Street and CDPQ – it will turbocharge our UK growth plans and consolidate our position as the leading electric car subscription service. This is a pivotal moment for the adoption of electric cars and at Onto we want to make them more accessible and affordable to people who want to make environmentally-conscious choices. The opportunity to provide an alternative to car ownership has also never been more desirable – our subscribers benefit from the convenience, flexibility and choice that come with a monthly subscription model.”
The startup offers a monthly car subscription service which enables people to sign up for an electric car with more flexibility. The service is also all-inclusive of insurance, breakdown cover and free public charging, and it doesn’t require a deposit or long-term commitment. Users can also swap cars or stop their subscription every month – making the service very much user-centric. Cars available include models from the likes of Renault, Peugeot, Volkswagen, Audi and Tesla.
Currently, the platform gives people access to over 25 different car models and there are 7000 Onto cars being driven in the UK.
Onto is tapping into a market with massive growth potential. Moving to more sustainable ways of life is a key priority for governments across Europe as ambitions to reach net zero need to be met, and soon. This, coupled with the specific plans to ban the sale of new petrol and diesel cars by 2030 (in the UK, but similar plans exist across Europe), consumers are increasingly looking for ways to make the switch.
The mobility innovators report that in 2022 subscribers collectively saved 4.8 million litres of petrol, which saved 9,695 tonnes of CO2 from being released into the atmosphere – the equivalent impact of 164,000 trees over 10 years.
Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ, said: “Onto provides an attractive and comprehensive subscription alternative to access EVs in an industry gaining momentum for environmentally-friendly modes of transportation. Building on the experience of investing in other leading asset-backed platforms by our Capital Solutions team—which provides flexible and innovative capital solutions to meet the evolving needs of companies—this financing will support Onto’s growing EV fleet. Working alongside partners like Pollen Street, we look forward to helping European businesses position themselves for growth while advancing our objective of contributing to the decarbonization of the real economy.”
Onto is now one of Europe’s leading players in the electric car market. With this credit line, the company will be able to keep growing and help push forward the shift to electric mobility across the continent.
Matthew Potter, Partner at Pollen Street Capital, said: “Building on our relationship with Onto, we are excited to once again work with a business that has a strong mission to enable access to electric vehicles and encourage the switch to greener mobility. This funding will play an important role in supporting Onto’s growth and aligns strongly with Pollen Street’s commitment to investments that drive a positive impact. We are also thrilled to partner with CDPQ on this facility, providing Onto with the joint funding to drive its 2023 goals together. CDPQ is a fantastic partner and we look forward to working with the team.”
