Paragon SME Lending has expanded its partnership with private-hire fleet operator Otto Car, increasing its funding facility to £3 million as the business continues to scale its low-emission vehicle fleet across London.
The latest tranche of funding, totalling £1.3 million, will support the addition of 50 vehicles to Otto Car’s fleet. This includes 25 fully electric Toyota BZ4X models and 25 Toyota Corolla hybrid vehicles, as the operator continues to transition towards cleaner transport options for private-hire drivers in the capital.
The partnership is built around a pay-per-use funding model, enabled through emissions-tracking technology provided by fintech firm Zeti.
The platform delivers real-time data on vehicle usage, emissions, asset health and utilisation, allowing funding repayments to be aligned with how vehicles are actually used.
This structure is designed to give Otto Car greater flexibility as it invests in electric and hybrid vehicles, while providing Paragon with improved transparency around asset performance and environmental impact.
Otto Car supplies vehicles to drivers operating across platforms including Uber, Free Now and Bolt. With the expanded facility in place, the business is looking to accelerate its decarbonisation plans while supporting improvements in air quality across London.
Gurinder Dhillon, managing director at Otto Car, says: “Paragon’s ongoing support has been instrumental in driving our shift towards hybrid and fully electric vehicles.
“This expanded facility enables us to continue investing in cleaner transport for London’s private-hire drivers, supported by Zeti’s smart technology and Paragon’s genuinely innovative funding structures.”
DECADE-LONG TRACK RECORD
The deal comes as Paragon marks 10 years since the launch of its SME Lending division. The division now works with around 16,000 UK SMEs and has seen its loan book quadruple over the past decade, with more than £3.6 billion provided to businesses looking to invest and grow.
Supporting the transition to net zero is a growing focus for the bank, with the Otto Car partnership cited as an example of how funding structures can support the adoption of greener assets.
Matt Bass, head of specialist finance at Paragon Bank, says: “This partnership showcases how data-driven funding can accelerate decarbonisation across a business’s operations.
“Increasing our facility to £3 million supports Otto Car’s fleet expansion and aligns with Paragon’s commitment to helping UK SMEs operate more sustainably. The pay-per-use model gives Otto flexibility, transparency and efficiency, and we’re proud to continue backing the company’s growth.”
Dave Kennon, commercial director at Zeti, added: “It’s really encouraging to see Paragon increase its commitment to Otto Car, and testament to the value of Zeti’s software.
“The combination of our real-time technology and Paragon’s flexible pay-per-use financing makes for a powerful model for scaling clean transport. We have ambitious plans to expand our work in this area with Paragon and are excited for the journey ahead.”
Pictured (L-R): Dave Kennon, Zeti, Gurinder Dhillon, Otto Car, Matt Bass, Paragon Bank
