Electric vehicle (EV) subscription service Onto has announced it has raised $175 million to transform the traditional car ownership model, in a combined equity and debt Series B funding round.
The investment comes as the UK-based sustainable mobility business, which says it enables customers to access an electric car on a subscription basis without huge deposits or a long-term commitment, embarks on the next phase of its rapid growth.
While two out of three UK drivers want their next car to be electric, the transition can be expensive and daunting.
With the rise of the subscription economy and growing demand for green transport options post-COVID, Onto says the new capital will help accelerate the expansion of its popular subscription model in the UK, with a view to exporting its car-as-a-service model in the future.
Onto says it offers UK-wide home delivery on all its vehicles and the subscription model includes 750 miles per month, insurance, service and repair, and free access to more than 12,500 public EV charge points via its network of charging partners. Onto has partnerships with Shell Recharge, BP Pulse, InstaVolt, and Tesla Supercharger.
CEO at Onto, Rob Jolly, 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.”