South Africa’s Planet42 receives $16 million from Standard Bank to help repay loans. Planet42, a car subscription company headquartered in South Africa, has secured $16 million (R300 million) in funding through a combination of local-currency debt and equity from Standard Bank.
The funding will be utilized to repay expensive euro-denominated loans.
South Africa’s Planet42 Receives $16 Million
Planet42’s recent funding round of $16 million in local-currency debt and equity comes on the heels of its previous successful fundraising efforts, totaling approximately $150 million. This includes a significant $100 million investment in equity, credit facilities, and debt obtained last year.
Founded in 2017 by Estonians Eerik Oja and Marten Orgna, Planet42 utilizes algorithms and data analysis to evaluate credit risk before extending rent or buy offers to prospects through a subscription-based model.
The company boasts an impressive monthly influx of over 60,000 vehicle applications and reports a notable 26% average sales increase for its South African dealers in the previous year.
Planet42 Expanding Reach
Highlighting its expanding reach, Planet42 has purchased over 12,000 vehicles for customers in South Africa and Mexico. In 2023, the company raised $100 million to further scale its operations in these regions, with investment from notable entities such as Naspers Limited and Rivonia Road Capital.
Emphasizing the strategic importance of securing local-currency debt, Planet42’s CEO underscored the significance of the partnership with Standard Bank, stating it as a pivotal step towards broader collaboration.
How Planet42 Stands Out In the Industry
While facing competition from industry players like Autochek and Moove, Planet42 stands out for its focus on serving private individuals within the car subscription space. Notably, Moove recently secured $10 million in debt funding from Stride Ventures. The industry’s overall market size, projected to reach $223.07 billion by 2027, reflects a burgeoning sector ripe for innovation and growth.
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