Electric car subscription service Onto has secured new credit funding of £100 million from global investors, spurring expansion of its “ don’t lease; subscribe” approach.
Québec-based financiers CDPQ and asset manager Pollen Street Capital are jointly underwriting the firm’s new asset-backed credit line, boosting its mission to provide an alternative to traditional car leasing.
Founded in 2018 by Dannan O’Meachair and former Jaguar Land Rover strategist Rob Jolly, pictured, Onto is at pains to stress no-deposit subscription as a market-creating mechanism to get drivers behind the wheels of amp-eaters across its 25 model range, from Fiats to top-end Teslas. The company has a fleet of 7,000 EVs in the UK, and employs 160 people.
The £100 million asset-backed facility will enable Onto to continue expanding its UK fleet with the latest electric car models.
Pollen Street has been a finance partner with Onto since July 2021. The facility also represents a new partnership between Pollen Street and the Canadians.
Onto’s monthly subscription model is all-inclusive of insurance, breakdown cover and free public charging. The firm expects no long-term commitment from subscribers, who are free to swap cars every month.
Co-founder Rob Jolly said: “The support of Pollen Street and CDPQ 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.
CDPQ’s head of fixed income investments Marc Cormier responded: “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.
Pollen Street partner Matthew Potter opined: “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 EVs and encourage the switch to greener mobility”.
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.
Onto says its subscribers saved 4.8 million litres of petrol in 2022, as they travelled over 45 million miles, more than double the previous year.