Onto, the UK-based EV subscription provider, has raised $60 million in equity for its European expansion.
The Series C funding round led by Legal & General will enable the company to launch in Germany in 2023 as it looks to accelerate electric car adoption in mainland Europe.
Existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Cerebrum Tech Limited, and the family office of Jim O’Neill participated in the round, bringing the total funding to over $330 million.
“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,” said Wian Pieterse, managing director, Fintech at Legal & General.
The investment comes as the UK-based sustainable mobility business grew more than 500% in 2021 despite the global semiconductor chip shortage creating challenges in the industry.
“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 of Onto. “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.”
While Onto offers 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. The business mainly focuses on usership over ownership, giving drivers more choice and flexibility around the car they drive.
“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,” Pieterse added.