- Onto will enter Germany in early 2023 as it seeks to accelerate the adoption of electric cars across Europe.
- The equity round was led by Legal & General.
[London, 27th July 2022] All-inclusive subscription service for electric cars On, raised $ 60 million in stock in a Series C funding round led by Legal & General. The round will allow the company 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 over 500% last year. This growth comes despite the global shortage of semiconductor chips creating challenges in the industry.
The innovative business model allows people to subscribe to an electric car on a monthly contract. Subscriptions are inclusive of public charge, insurance and breakdown coverage, with no down payment or long-term commitment. Onto is disrupting traditional ownership models by offering consumers a truly flexible subscription alternative.
Currently, Onto, the UK’s leading automotive subscription service, will use the investment to launch in Germany in 2023, as it aims to accelerate the adoption of electric cars in mainland Europe and secures its position as a reference brand. for those wishing to switch to electric. The company already has an office in Germany and has welcomed the new managing director of Germany, Joerg Feldheim. Having worked in leadership roles in the automotive industry for over two decades, Joerg brings extensive international startup, management and transformation experience to drive the company’s expansion.
Onto’s business model draws on three key trends. As a player in the season ticket economy, Onto focuses on user rather than ownership, giving drivers more choice and flexibility around the car they drive.
At the same time, digitalization is having a significant impact on the automotive industry, Onto has simplified the entire user experience by digitizing the end-to-end user journey. From registering and booking a car online to home delivery in days, attention to the simplicity of the user’s journey plays into the growing consumer demand for ease and convenience.
Finally, the increase marks a significant time for the journey to net zero as the shift to carbon-free mobility is accelerating. Coupled with government plans to ban the sale of new gasoline and diesel cars by 2030, consumers are increasingly looking for ways to make the switch.
Legal & General, a leading financial services firm, led the round. The round was attended by existing investors including Alfvén & Didrikson, Accelerated Digital Ventures, Campden Hill and Jim O’Neill’s family office. The Series C increase brings Onto’s total funding to date to over $ 330 million worth of equity and debt.
Onto’s monthly subscription service includes 750 miles per month, insurance, service and maintenance, and free public charging at over 12,500 points via its UK network of charging partners: Shell Recharge, BP Pulse, InstaVolt and Tesla Supercharger.
Rob Jolly, CEO and co-founder of Onto, said:
“This funding round is a huge milestone for Onto as it sets us up on our journey to Europe. Germany, a nation with an incredible automotive history as the largest automobile producing country in Europe, is a market with huge potential and a huge appetite for electric cars. We are thrilled to offer something different.
A recent EY Consumer Index study showed that 49% of car buyers want an electric vehicle as their next car, with upfront costs and charging concerns seen as the most significant obstacles for first-time EV buyers. With nearly 90% of our customers preferring the convenience of an all-inclusive package that covers everything, even public pricing, our unique offering meets the needs of these customers with a choice of 18 car models.
Onto takes the hassle and effort out of purchasing an electric vehicle. We believe that making it simple and easy to get an electric car is essential to building a sustainable future. “
Wian Pieterse, Managing Director, Fintech of Legal & General, said:
“At Legal & General we are committed to doing our part in tackling the climate crisis and investing with determination in companies that do good. Onto is an exciting example; an ambitious company with a talented management team who will play a vital role in accelerating the transition to electric vehicles. We expect to see a growing demand for subscription models that not only pave the way for a sustainable lifestyle, but also meet the needs of those who don’t want to tie up valuable savings or take out a loan to buy a car.
“Onto has grown rapidly over the past four years and we look forward to working with the team to help the business grow and expand into new markets, all while investing for the benefit of our company’s future.”
– ends –
Images can be downloaded here
For media inquiries, please contact [email protected]
For legal and general media inquiries, please contact [email protected]
On was founded in 2017 by Rob Jolly and Dannan O’Meachair and offers motorists an accessible, flexible and simple way to join the electric vehicle revolution. Over the past five years, Onto’s new and innovative all-inclusive car subscription service has proved a hit with consumers, allowing many to move away from the traditional internal combustion engine. Since 2018, Onto has expanded rapidly, partnering with new charging and electric car suppliers as more electric vehicles become available to suit all budgets. Onto currently offers 18 models, with subscriptions starting at £ 489 per month.
In 2020 Towards business was launched that offers businesses a flexible, no-obligation car subscription solution for their employees. Both parties can capitalize on the tax savings and to date over 100 companies have over 600 vehicles through an Onto for Business subscription.
Legal and General Information
Founded in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with over £ 1.4 trillion in assets under management * of which one third is international. L&G also provides powerful asset creation capabilities. Together, these elements underpin our leading pension and protection solutions: We are a leading international player in pension risk transfer, UK and US life insurance, and workplace pensions and retirement income. United Kingdom. Through inclusive capitalism, we aim to build a better society by investing in long-term assets for the benefit of all.
* as of March 9, 2022
Onto Holdings secures £ 49.9m investment in Series C led by Legal & General – UK Tech Investment News
Source link Onto Holdings secures £ 49.9m investment in Series C led by Legal & General – UK Tech Investment News