United Kingdon – All-inclusive electric vehicle subscription service Onto, has raised $60M USD in equity in a Series C funding round led by Legal & General. The round will enable the business to consolidate leadership in the UK and expand into Europe, starting with Germany.
The investment comes as the UK-based sustainable mobility business continues to see rapid growth, having grown more than 500% last year. This growth comes despite the global semiconductor chip shortage creating challenges in the industry.
The innovative business model enables people to subscribe to an electric car on a monthly contract. The subscriptions are inclusive of public charging, insurance, and breakdown cover, without any upfront deposit or long-term commitment. Onto is disrupting the traditional ownership models by offering consumers a truly flexible subscription alternative.
Presently, the UK’s leading car subscription service, Onto will use the investment to launch in Germany in 2023 as it looks to accelerate electric car adoption in mainland Europe, and secure its position as the go-to brand for those looking to make the switch to electric. The company already has an office in Germany and welcomed their newly appointed Managing Director of Germany, Joerg Feldheim. Having worked in leadership roles in the automotive industry for over two decades, Joerg brings extensive international startup, management, and transformation experience to drive the company’s expansion.
Onto’s business model taps into three key trends. As a player in the subscription economy, Onto focuses on users over ownership, giving drivers more choice and flexibility around the car they drive.
At the same time, digitalization is having a significant impact on the automotive industry, Onto has streamlined the entire user experience by digitizing the end-to-end user journey. From signing up and booking a car online to having it delivered to your doorstep within just a few days, a focus on the simplicity of the user journey plays into the increased consumer demand for ease and convenience.
Finally, the raise marks a significant moment for the journey to net-zero as the shift toward carbon-free mobility is accelerating. Coupled with government plans to ban the sale of new petrol and diesel cars by 2030, consumers are increasingly looking for ways to make the switch.
Leading financial services company Legal & General led the round. 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.
