Electric car subscription giant Onto Holdings has called in administrators after failing to secure extra cash from its shareholders.

Onto has some 7,000 electric cars on its fleet, including Renault, Peugeot and Volkswagen EVs

Onto, which claimed to be the largest electric car fleet in the UK and Europe’s leading electric car subscription service, offered flexible all-inclusive leases which also provided insurance, servicing and public charging to help drivers go electric.

It had a fleet of over 7,000 electric cars and some 20,000 customers but was hit by heavy depreciation and falling residual values.

Jonathan Lees and Gavin Maher of Teneo Financial Advisory were appointed as joint administrators on 11 September 2023, while Gavin Maher and Ian Wormleighton were also appointed as joint administrators over four subsidiaries of the company.

Maher said: “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.”

Founded in 2018 by Rob Jolly and Dannan O’Meachair, Onto had a mission to provide a more accessible and affordable way for people to switch to electric cars. Vehicles on its fleet included Renault, Peugeot, Volkswagen, Audi and Tesla EVs and subscribers had month-to-month flexibility to swap car models or end their subscription.

The business had raised more than £350m in funding since launching, including a £100m asset-backed facility from global investment group CDPQ and independent asset manager Pollen Street in January 2023. It had also received tens of millions from L&G, which led a $60m (£48.1m) funding round last year but said in July that it would not commit further funding.

According to Sky News, Onto had drafted in Deloitte in August to work on a sale or financing deal to consider strategic options for the group.

In 2022, the business was recognised by Deloitte as the fourth fastest-growing UK tech business in its Fast 50 list.

Speaking to Sky News last month, Onto chief executive Rob Jolly described the company as “the pre-eminent market leader in electric car subscriptions, and the board is confident that our proposition can continue to play a key role in the UK’s net zero transition”.