Electric car subscription service Onto has raised £50 million in a Series C funding round to consolidate leadership in the UK and expand into Europe, starting with Germany.
The investment comes after the sustainable mobility business, featured on our TransportTech 50 ranking in 2021, grew more than 500% last year despite the global semiconductor chip shortage.
Onto enables people to subscribe to an electric car on a monthly contract. The subscriptions, which allow 750 miles a month, are inclusive of public charging at more than 12,500 points via its partners – Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger – insurance and breakdown cover, without any upfront deposit or long-term commitment.
The company already has an office in Germany. Newly appointed MD of Germany, Joerg Feldheim, has worked in leadership roles in the automotive industry for over two decades.
Financial services company Legal & General led the round. Existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Campden Hill, and the family office of Jim O’Neill participated.
The Series C raise brings Onto’s total funding to date to over $330m in equity and debt.
“This funding round is a huge milestone for Onto as it sets us off on our journey to Europe,” said Rob Jolly, CEO and co-founder.
“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.
“Onto takes the hassle and effort out of getting an EV. We believe that making it simple and easy to get an electric car is essential to building a sustainable future.”
Wian Pieterse, MD Fintech at Legal & General, said: “At Legal & General 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; 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.
“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.”