London-based all-inclusive electric car subscription service Onto has raised $60 million in equity in a Series C funding round to consolidate leadership in the U.K. and expand into Europe. Its first pitstop will be Germany, where the company will set foot next year.
The round was led by Legal & General. Existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Campden Hill, and the family office of Jim O’Neill participated in the round. The Series C raise brings Onto’s total funding to date to over $330 million.
Founded in 2017 by Rob Jolly and Dannan O’Meachair, the company provides an accessible, flexible and easy way for motorists to join the EV revolution. In the last five years, Onto’s new and innovative all-inclusive car subscription service has proved a hit with consumers – enabling many to move away from the traditional internal combustion engine. Since 2018, Onto has expanded rapidly, partnering with new charging and electric car providers as more EVs become available to suit all budgets. Onto currently offers 18 models, with subscriptions starting from £489 per month.
It’s a challenging time for the electric car industry with the semiconductor chip shortage. But despite this, Onto claims to have witnessed business growth of more than 500% last year. Its focus on usership over ownership, offering subscribers choices and flexibility, has proven popular with electric car veterans, novices and the EV curious.
In 2020 Onto for Business was launched which provides companies with a flexible, no-commitment car subscription solution for their employees. Both parties can capitalise on tax savings and to date over 100 companies have over 600 vehicles via an Onto for Business subscription.
Having established itself in the home turf in the U.K., Onto will use the investment to launch into Germany in 2023 as it looks to accelerate electric car adoption in mainland Europe, and secure its position as the go-to brand for those looking to make the switch to electric.
Rob Jolly, CEO and co-founder at Onto, said: “This funding round is a huge milestone for Onto as it sets us off on our journey to Europe. 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.”
Onto’s monthly subscription service includes 750 miles per month, insurance, servicing and maintenance, and free public charging at more than 12,500 points via its UK network of charging partners - Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger.
Wian Pieterse, managing director in fintech at Legal & General, added: “We’re committed to playing our part in tackling the climate crisis and investing with purpose into companies that do good. Onto is an exciting example of this. 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.