Electric car subscription service Onto has raised $60 million in Series C funding to accelerate its European expansion.
The UK-based company, which has grown by more than 500% in the last year, plans to enter Germany early next year with other countries to follow.
Onto allows drivers to subscribe to an electric car on a month-to-month contract with insurance and breakdown cover thrown in without any upfront deposit or long-term commitments.
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.
“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. We’re excited to offer something different,” said Rob Jolly, Onto’s CEO and co-founder.
“A recent EY Consumer Index study showed 49% of car buyers want an electric vehicle as their next car, with upfront costs and concerns about charging seen as the most significant barriers for first-time EV buyers. With almost 90% of our customers preferring the convenience of an all-inclusive package that covers everything – even public charging – our unique proposition addresses these customers’ needs with a choice of 18 car models.”
The funding round was led by financial services company Legal & General and existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Cerebrum Tech Limited, 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 USD equity and debt.
“Onto is an exciting example of this; an ambitious company with a talented management team that will play a vital role in accelerating the transition to electric vehicles. 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,” said Wian Pieterse, Managing Director, Fintech at Legal & General.
“Onto has grown rapidly over the last four years, and we’re looking forward to working with the team to help the business scale and expand into new markets, all while investing to benefit the future of our society”.
