UK-Based EV Subscription Service Onto Raises £100M Credit Facility From CDPQ & Pollen Street To Ramp Up Operations
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Onto, a UK-based vehicle subscription service, is working to accelerate EV adoption by making access to electric vehicles easier, flexible, and affordable. Through its all-inclusive packages, Onto eliminates the hassle of long term contracts and large upfront deposit payments as well as the seemingly endless paperwork usually associated with traditional leasing programs. Onto’s subscriptions run monthly. One can then choose to continue their subscription, cancel, or swap to a different model. Onto’s subscriptions include insurance, road tax, public charging, breakdown cover, servicing, and free public charging. The monthly subscription comes with 750 miles. One can then pay extra to enjoy driving many more miles by purchasing a mileage package. These packages can give you 250, 500, 750, or 1000 extra miles.
Subscribers get access to free public charging at over 11,000 chargers across the UK, including at Shell Recharge and InstaVolt. At the end of the Onto subscription, one can arrange for the collection of the car in the app and only have to pay the collection fee of £129.50.
Onto was founded in 2018 and has grown to become the largest electric car subscription service in Europe, with over 7,000 cars in the UK. Some of the cars on its platform include the Renault Zoe, S Edition R135 EV 50 Rapid Charge, Fiat 500 Electric, Icon Hatchback, Renault Megane, E-TECH Techno EV60 160kW optimum charge, Audi Q4 40 e-tron S Line Comfort and Sound package, Tesla Model 3 Long Range, the Tesla Model Y Long Range, and many other EVs.
Onto is now moving to scale up its operations and has recently raised a new credit funding line of £100 million from global investment group CDPQ and independent asset manager Pollen Street, boosting its mission to accelerate electric car adoption and provide a flexible alternative to the traditional car ownership model. The £100 million asset-backed facility will enable Onto to continue expanding its UK fleet with the latest electric car models. This new facility builds on the existing relationship between Onto and Pollen Street; Pollen Street has been a finance partner to Onto since July 2021. The facility also represents a new partnership between Pollen Street and CDPQ.
Rob Jolly, Onto CEO & Co-Founder, said: “We’re grateful for the support of Pollen Street and CDPQ – it will turbocharge our UK 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. The opportunity to provide an alternative to car ownership has also never been more desirable – our subscribers benefit from the convenience, flexibility and choice that come with a monthly subscription model.”
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. Building on the experience of investing in other asset-backed platforms by our Capital Solutions team— which provides flexible and innovative capital solutions to meet the evolving needs of companies—this financing will support Onto’s growing EV fleet. Working alongside partners like Pollen Street, we look forward to helping European businesses position themselves for growth while advancing our objective of contributing to the decarbonization of the real economy.”
Matthew Potter, Partner at Pollen Street Capital, said: “Building on our relationship with Onto, 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. This funding will play an important role in supporting Onto’s growth and aligns strongly with Pollen Street’s commitment to investments that drive a positive impact. We are also thrilled to partner with CDPQ on this facility, providing Onto with the joint funding to drive its 2023 goals, together. CDPQ is a fantastic partner and we look forward to working with the team.”
This is a model I like, and I would like to see spreading to other parts of the world ASAP. Eliminating upfront deposit payments and allowing flexible monthly subscriptions really helps to lower the barriers to entry for people to go electric.
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