Otto Car, London’s largest provider of private hire cars, has acquired new zero-emission vehicles with the help of latest funding.

Paragon worked with Zeti to enable Otto to acquire the new fleet via a pay-per-use funding model

Paragon Bank provided £760,000 in funding to enable the purchase of nine fully electric Škoda Enyaqs and 20 Kia Niros to expand its fleet.

Paragon’s SME Lending division worked with Zeti, a specialist in clean transport financing solutions, to enable Otto to acquire the new fleet utilising a pay-per-use funding model.

Zeti’s software offers real-time monitoring of Otto’s zero-emission vehicles, reporting on usage of the vehicles, carbon emissions and more. Since Otto purchased the nine Enyaqs in July 2024, over 12,644kg of CO2 emissions have been saved and over 7.4kg of NOx.

This approach enables Otto to repay its facility with Paragon depending on the usage of the vehicles, and possibly repay the facility earlier than a traditional asset finance facility.

Gurinder Dhillon, managing director at Otto Car, commented: “It’s been brilliant to work with both Zeti and Paragon Bank to fund our latest fleet of zero-emission cars. Zeti’s innovative technology and Paragon’s pay-per-use funding model has meant this is a one-of-a-kind partnership that will support our goal to decarbonise the streets of London.”

Matt Bass, head of specialist lending at Paragon, added: “We look forward to building on this collaborative model, working with both Zeti and Otto to deliver financing solutions aligned to the use of the vehicles and continuing to help SME businesses in the UK to play their part in reaching net zero.”