Planet42, a South African car subscription startup, has raised $100 million in equity and debt funding to solve transport inequality by putting cars in the hands of people who cannot access traditional bank credit.
The $15 million equity round was co-led by Naspers and ARS Holdings, with participation from existing and new shareholders, including Rivonia Road Capital, who also offered a $75 million credit facility. Private investors contributed a further $10 million in debt financing.
Grant Wing, South Africa Managing Director and Country Manager of Planet42, said, “Our mission is to empower people to create a brighter future for themselves, and we are proud to be a part of their journey towards financial inclusion and success.”
Planet42 was founded in South Africa in 2017 by Eerik Oja and Marten Orgna.The co-founders raised capital in their native Estonia to launch a rent-to-own car business in South Africa. Originally named CarGet, the company has now rented out over 5,000 vehicles and receives over 30,000 applications per month.
Since its inception, the startup has onboarded 1,000 dealerships who have been added to the Planet42 platform which buys the customer’s chosen car and rents it out to them on a subscription basis. According to the company, 89% of their customers would not have been able to access a personal vehicle through other means. Dealers in Planet42’s South African network have reported an average increase in sales of 26% since becoming partners.
Its socially inclusive subscription model offers people who are underserved by traditional banking institutions with a path to vehicle ownership. Using proprietary scoring algorithms and data science, Planet42 assesses a customer’s risk level and generates an offer to acquire a car from a car dealership of their choice.
After successfully rolling out in South Africa, Planet42 recently launched in Mexico, with over 250 cars already delivered to customers. The company now wants to scale its business and meet its ambition of providing 1 million cars worldwide.”
Andrew Rolfe, General Partner at ARS Holdings, who joins Planet42 as a member of its supervisory board, said, “Planet42’s team has displayed remarkable execution, with a proven innovative, cash-generating, and globally scalable model.”