Paragon drives Otto Car’s fleet expansion

Paragon Bank has backed Otto Car to expand its zero-emission vehicle fleet, facilitated by Zeti’s innovative pay-per-use funding model.

Paragon’s SME Lending division provided £760,000 in funding to Otto Car to facilitate the purchase of nine fully electric Skoda Enyaqs and 20 Kia Niros to expand its fleet.

Otto Car is a London-based company that provides private hire cars to drivers, including those working for ride-sharing companies like Uber, Free Now and Bolt.

Paragon worked with Zeti, an innovator in clean transport financing solutions, to enable the company to acquire the new fleet utilising the firm’s innovative 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 Skoda Enyaqs in July 2024, over 12,644 kilograms of CO₂ emissions have been saved and over 7.4 kilograms of NO_x.

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. This deal was led on behalf of Paragon Bank’s SME Lending division by Matt Bass, Head of Specialist Sales.

Dave Kennon, Commercial Director at Zeti, said: “We’re delighted to count Paragon, with its expertise and scale, and Otto Car, Europe’s largest private hire fleet, as clients.

“They each share our values, priding themselves on customer focus and a drive to innovate and deliver clean transport for our roads. Many further opportunities lay ahead.”

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 de-carbonise the streets of London.”

Matt Bass, Head of Specialist Lending at Paragon added: “We are thrilled to partner Zeti and deliver funding for Otto Car Limited’s zero-emission fleet of cars through an innovative pay-per-use model.

“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.”