UK electric car subscription service Onto says it has raised 175 million dollars (about £125 million) in a new financing round. Alfvén & Didrikson and Pollen Street Capital led the Series B funding round, with the most prominent investor being TotalEnergies.
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 further afield.
Onto, formerly known as Evezy, has placed a slew of orders for electric vehicles since last summer, now offering about 3,000 electric cars to subscribers. In July last year, Onto ordered more than a thousand Zoe electric cars and 600 EVs from PSA brands, specifically the Peugeot e-208 and DS 3 Crossback E-Tense. This year, another 275 electric cars were ordered from Hyundai, as well as 300 Audi e-trons. Previously, as Evezy, the company had already set itself up with several Nissan Leafs, BMW i3s, Tesla Model 3s and Jaguar I-Paces.
Most recently, the company also placed an order for over 700 Fisker Ocean EV and followed up with another 250 Peugeot e-208. As a result, the Onto fleet now includes about 3,000 all-electric cars for hire. Perhaps there was little surprise that investors were eager to get on board. The Series B raise brings Onto’s total funding to date to $245 million (about £176 million).
“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,” said Rob Jolly, CEO at Onto.
Onto now offers around 3,000 electric cars to subscribers.
Onto’s subscription model includes free car delivery, 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.
“While two out of three UK drivers want their next car to be electric, the transition can be expensive and daunting,” Jolly continued.
“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.”
While the company did not disclose the number of subscribers, it says over 300 businesses had signed up for its recently launched B2B service Onto for Business. Employees have access to the same range of EVs with insurance, maintenance and charging included.
Only last week, British electric car leasing platform WeVee closed a seed financing of seven million dollars. The company intends to use this to finance its expansion into continental Europe.
