Paragon SME Lending has strengthened its partnership with private‑hire fleet provider, Otto Car, by increasing its funding facility to £3m.
The funding is set to enable the business to continue scaling its low‑emission fleet in London.
The latest tranche, a £1.3m deal, will support the addition of 50 vehicles, comprising 25 Toyota BZ4X fully electric vehicles and 25 Toyota Corolla hybrid vehicles.
A feature of the partnership is Paragon’s pay‑per‑use funding model, enabled through emission-tracking fintech, Zeti.
Its technology provides real‑time data on vehicle usage, emissions, asset health and utilisation, enabling Otto Car to repay funding in line with how the vehicles are used.
This flexible structure aims to support Otto Car’s transition to electric and hybrid vehicles, while offering Paragon transparency on environmental performance.
Otto Car supplies vehicles to drivers working across platforms including Uber, Free Now and Bolt.
Gurinder Dhillon (pictured centre), managing director at Otto Car, said: “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.”
Matt Bass (pictured right), head of specialist finance at Paragon Bank, said: “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 (pictured left), 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.”
