EV Subscription Service Onto Nets $124M Credit Facility

The electric car subscription service Onto has secured a £100 million ($123.9 million) credit line.

The London-based firm announced the new facility in a blog post on Wednesday (Jan. 25), stating that it will use the funds to expand its fleet of electric vehicles (EVs).

The facility is provided by global investment groups CDPQ and Pollen Street. The former is a new financial backer and the latter has been a finance partner with Onto since 2021.

Founded in 2018, Onto offers a monthly subscription that allows people to rent EVs, with insurance, breakdown coverage and access to public charging stations included in the monthly fee. Each subscription allows users to drive up to 750 miles per month, with the option to buy extra miles as they need.

Car subscription firms offering an alternative to traditional financing and auto lease options have recently increased. For example, in the U.S., the subscription company GO has expanded to eight states. Another company, Steer EV offers a similar all-electric proposition to Onto.

In the U.K., Onto’s electric car fleet now includes 25 different models, with flexible contracts that allow users to switch vehicles each month.

Commenting on the latest credit facility, Rob Jolly, CEO and co-founder at Onto, said: “We’re grateful for the support of Pollen Street and CDPQ — it will turbocharge our U.K. growth plans and consolidate our position as the leading electric car subscription service. This is a pivotal moment for the adoption of electric cars and at Onto we want to make them more accessible and affordable to people who want to make environmentally-conscious choices.”

Joining him, Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ, said, “Onto provides an attractive and comprehensive subscription alternative to access EVs in an industry gaining momentum for environmentally-friendly modes of transportation.

Finally, Matthew Potter, Partner at Pollen Street Capital, said, “we are excited to once again work with a business that has a strong mission to enable access to electric vehicles and encourage the switch to greener mobility.”

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