Electric car subscription company Onto has entered administration just over a year after securing nearly £150m in funding.
Onto said in an announcement on Monday that it had appointed administrators from Teneo Financial Advisory to oversee the administration of Onto Holdings, along with its four additional subsidiaries.
Administrators cited rising interest rates and a “squeeze” on disposable income as reasons why Onto failed to secure additional shareholder funds.
Based in Warwickshire, Onto at one time was one of the UK’s largest EV firms. It acquired a fleet of electric cars, which customers could pay a monthly subscription to use.
The cost of the subscription included the vehicle itself, the insurance and charging.
The firm secured £100m in debt financing in January from investment group CDPQ and asset manager Pollen Street with the goal of expanding its collection of cars to lease out.
The credit facility followed a $60m (£48.1m) Series C round for Onto from the financial services group Legal & General, among others.
In July, Sky News reported that L&G would provide no additional funding for Onto, though the firm did not comment at the time as to why.
L&G declined to comment on the situation.
Gavin Maher, senior director at Teneo and Onto joint administrator, said in a statement: “Onto has suffered from the steep fall in electric vehicle residual value in the first half of 2023, rising interest rates and the squeeze on disposable income and was unable to secure additional funding from its shareholders.
“After entering administration, Onto will continue to serve existing customers as the administrators explore strategic options.”