EV leasing service Onto secures $60m backing to drive European expansion

UK electric car subscription service Onto has raised $60m from a raft of both new and existing investors in order to help fund its expansion across Europe next year, it announced today.

Financial firm Legal & General led the Series C funding round, which also saw fresh backing from a raft of existing investors in the e-mobility company, including Alfvén & Didrikson, Accelerated Digital Ventures, Campden Hill, and the family office of Jim O’ Neill, the UK firm said.

The company said the proceeds would be used to support its launch in Germany in 2023 as the first step in its broader European expansion plan, in addition to helping the firm towards “consolidating its leadership” in the UK.

Onto, which claims to be the UK’s leading car subscription service, said the results of the Series C funding round had brought total funding in the firm to date to more than $330m in equity and debt.

CEO and co-founder of Onto, Rob Jolly, said the funding round was a “huge milestone” for the firm.

“Germany, a nation with an incredible automotive history as Europe’s biggest car-producing country, is a market with huge potential and a great appetite for electric cars,” he said. “We’re excited to offer something different.”

Jolly claimed that Onto’s subscription model made electric vehicles (EVs) accessible to a broader cross-section of customers.

“A recent EY Consumer Index study showed 49 per cent of car buyers wanting an electric vehicle as their next car, with upfront costs and concerns about charging seen as the most significant barriers for first time EV buyers,” he explained. “With almost 90 per cent of our customers preferring the convenience of an all-inclusive package that covers everything – even public charging – our unique proposition addresses these customers’ needs with a choice of 18 car models.”

Onto’s monthly contract offers customers 750 miles per month, as well as insurance, servicing and maintenance. It also includes free public charging at more than 12,500 points across the UK offered by Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger.

Wian Pieterse, managing director of fintech at Legal & General, predicted there growing demand for subscription models that seek to bring down the cost of driving an electric vehicle.

“We expect to see increasing demand for subscription models that not only pave the way towards a sustainable way of living but also meet the needs of those who don’t want to tie up valuable savings or incur a loan to buy a car,” he said. “Onto has grown rapidly over the last four years, and we’re looking forward to working with the team to help the business scale and expand into new markets, all while investing to benefit the future of our society.”

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