Electric car subscription service Onto has raised $60 million (£50m) in equity to expand into Europe, starting with Germany.
The $60M USD in equity in a Series C funding round was led by Legal & General and 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.
Onto will use the investment to launch into 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.
Finally, the raise marks a significant moment for the journey to net-zero as the shift towards 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.
Rob Jolly, CEO and co-founder at Onto, said: “This funding round is a huge milestone for Onto as it sets us off on our journey to Europe. 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. We’re excited to offer something different.
A recent EY Consumer Index study showed 49% of car buyers want an electric vehicle as their next car, with upfront costs and concerns about charging seen as the most significant barriers for first time EV buyers. 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 with a choice of 18 car models.
Onto takes the hassle and effort out of getting an EV. We believe that making it simple and easy to get an electric car is essential to building a sustainable future.”
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.