£100m to accelerate the switch to electric vehicles. Written by Daniel and read to you by Cassidy, subscribe to Electric Vehicle News Bitesize Podcast for FREE!
Electric car subscription service Onto has raised a new £100m debt financing facility to support its mission to drive Electric Vehicle adoption.
Founded in 2018 by Rob Jolly and Dannan O’Meachchair, the Warwick firm has developed an all-inclusive subscription service covering insurance, maintenance and public charging at more than 11,000 charging points in the UK. Subscribers have no down payment or long-term commitment, and can switch cars or cancel subscriptions every month.
Funding from global investment group CDPQ and independent wealth manager Pollen Street will help Onto offer a flexible alternative to traditional car ownership models.
The asset-backed £100m facility will enable Onto to further expand its UK fleet using the latest electric vehicle models. This new facility builds on the existing relationship between Onto and Pollen Street; which has been Onto’s financing partner since July 2021. The facility also represents a new partnership between Pollen Street and CDPQ.
Onto has grown to become Europe’s largest electric vehicle subscription service, with more than 7,000 vehicles in the UK.
Since the first investment by Pollen Street in 2021, Onto has doubled the size of its electric fleet and now includes 25 different models. The company has raised a total of £340m through equity and debt, most recently closing a £45m Series C round. In 2022, Deloitte ranks the company as the fourth fastest-growing UK tech company on the Fast 50 list.
Rob Jolly, Onto CEO & Co-Founder, said: “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.
“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 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.”
Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ, said: “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 Electric Vehicle fleet”.
Matthew Potter, Partner at Pollen Street Capital, said: “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.
“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”.
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