Electric car subscription service Onto has raised a new credit funding line of £100m to continue expanding its UK fleet with the latest electric car models.

Onto was formed in 2018 by co-founders Rob Jolly (left) and Dannan O’Meachair and now has more than 7,000 cars in the UK

Founded in 2018, the company now has more than 7,000 cars in the UK, which it says makes it the largest electric car subscription service in Europe. But it’s planning to expand further on the back of fast-rising demand for EVs.

Rob Jolly, CEO and co-founder, said the funding would “turbocharge our UK growth plans and consolidate our position as the leading electric car subscription service”.

The new credit line will also continue the company’s work to provide a flexible alternative to the traditional car ownership model. Its monthly subscription model includes insurance, breakdown cover and free public charging and customers also have the option to swap cars or stop the subscription every month.

Jolly continued: “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.”

The £100m asset-backed facility is from global investment group CDPQ and independent asset manager Pollen Street, marking the first partnership between the two. Pollen Street has been a finance partner to Onto since July 2021 and previously enabled the company to double the size of its electric car fleet, which now includes 25 different car models.

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.”

He continued: “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 decarbonisation of the real economy.”

Onto has raised £340m in total in equity and debt, after recently completing a £45m Series C raise. In 2022, the business was recognized by Deloitte as the fourth fastest-growing UK tech business in its Fast 50 list.