Birmingham-based Onto has raised $60m (£49.9m) in a Series C equity funding round for its electric vehicle (EV) subscription service.
A study from accounting firm EY found that 49% of drivers want their next vehicle to be an electric car. However, EVs remain prohibitively expensive for many. Data from NimbleFins shows the average upfront cost of an electric car is almost double that of a standard car in the UK.
Onto is offering a different way to finance EVs. Customers are charged a monthly fee that covers the car, insurance, and public charging.
“With almost 90% of our customers preferring the convenience of an all-inclusive package that covers everything – even public charging – our unique proposition addresses these customers’ needs,” said Onto co-founder and CEO Rob Jolly.
“We believe that making it simple and easy to get an electric car is essential to building a sustainable future.”
The new funding will go towards a European expansion for Onto. Jolly highlighted the German market as a key market for the company.
“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,” Jolly said.
The Series C round was led by the financial services group Legal & General. Existing investors Alfvén and Didrikson, Accelerated Digital Ventures, Cerebrum Tech Limited, and the family office of Jim O’Neill also participated in the round.
“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,” said Wian Pieterse, managing director of fintech at Legal & General.
“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”.
The new funding follows the company’s combined equity and debt Series B round of $175m (£145.6m) in July 2021. The latest round has brought the total figure raised by the company to $330m (£274.5m).