By Lucy Kenningham
Legal & General (L&G) has pulled out of any future investments into Onto, which is one of Britain’s largest electric vehicle (EV) fleet operators, according to reports from Sky News yesterday.
Last year, the asset management and pensions giant led a $60m (£47.3m) funding round into the EV-focused startup.
At the time it called Onto “an ambitious company with a talented management team that will play a vital role in accelerating the transition to electric vehicles”.
Sources close to Sky News told the outlet that L&G had invested £22.5m of funds into Onto just last month.
Onto is an EV subscription company founded in 2018. It now boasts a fleet of over 7,000 electric cars and
is one of Europe’s top outfits offering a subscription service for EVs.
However, it has been hit by the declining value of electric cars, with a car comparison site in May revealing that electric cars are losing their value twice as quickly as petrol vehicles.
Between 2020 and 2023, EVs have seen their prices plummet by 39 per cent.
This week’s news is understood to have left the startup in dire financial straits, with Alix Partners apparently making contingency plans for a potential administration.
Rob Jolly, CEO and co-founder of Onto told City A.M.: “L&G continues to be a supportive shareholder with Onto, however isn’t planning to invest further at this time.
“We are therefore exploring a number of options regarding further investment while we continue on our path to profitability.”
Jolly expressed confidence in Onto due to strong demand for electric cars.
L&G declined to comment.
Sky News’s Mark Kleinman said:“If the company does collapse, it will leave L&G facing awkward questions about the extent of its losses.”
