Electric car subscription service Onto has raises US$175m (£126m) in a Series B round, to accelerate the shift to electric mobility in the UK.
The investment comes as the UK-based sustainable mobility business, which enables customers access to an EV on a subscription basis, embarks on the next phase of growth.
According to Onto, with the rise of the subscription economy and growing demand for green transport options post-Covid, the new capital will help it to expand of its UK offering, with a view to exporting its car-as-a-service model to further afield in the future.
Rob Jolly, CEO at Onto, said: “While two out of three UK drivers want their next car to be electric, the transition can be expensive and daunting. 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.
“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”
Existing investors ADV (Legal and General), Cerebrum Tech Limited and JamJar also participated in the oversubscribed equity round, alongside new investments from TotalEnergies Ventures, Vlerick Group and Dutch insurer Achmea Innovation Fund.
Lazard acted as financial advisors to Onto for the equity, and Deloitte for the debt. Pollen Street Capital supported the round with a senior-secured asset-backed debt facility. The Series B raise brings Onto’s total funding to date to US$245m (£176m).