Electric car subscription service Onto has raised a new credit funding line of £100 million from global investment group CDPQ and independent asset manager Pollen Street, supporting its mission to accelerate electric car adoption and provide a flexible alternative to the traditional car ownership model.
“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,” said Onto CEO & Co-Founder Rob Jolly.
“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 £100 million asset-backed facility will enable Onto to continue expanding its UK fleet with the latest electric car models. This new facility builds on the existing relationship between Onto and Pollen Street, which has been a finance partner to Onto since July 2021. The facility also represents a new partnership between Pollen Street and CDPQ.
“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,” Jolly continued.
Onto’s monthly subscription model is all-inclusive of insurance, breakdown cover and free EV charging. It provides subscribers with flexibility thanks to no deposit, no long-term commitment and the option to swap cars or stop the subscription every month.
“Onto provides an attractive and comprehensive subscription alternative to access EVs in an industry gaining momentum for environmentally-friendly modes of transportation,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ.
“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.”
The funding will enable Onto to expand its UK fleet with the latest EV models.
Onto was founded in 2018 and has grown to become the largest electric car subscription service in Europe, with over 7,000 cars in the UK. Since Pollen Street’s first facility in 2021, Onto has doubled the size of its electric car fleet, which now includes 25 different car models.
Onto has raised £340 million in total in equity and debt, most recently completing its £45 million Series C raise. In 2022, the business was recognized by Deloitte as the fourth fastest growing UK tech business in its Fast 50 list.
“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,” added Matthew Potter, Partner at Pollen Street Capital.
“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.”