Venture Capital: South African, Cars-On-Subscription Startup Planet42 Raises $100M
Planet42 is a South African startup offering cars on subscription to the underprivileged.
Planet42, a South African startup that offers car subscriptions to those who cannot access traditional bank credit, has raised US$100 million in combined equity and debt funding to support its expansion.
The company partners with dealerships across South Africa to offer access to personal cars, using an automated scoring algorithm to process client applications based on credit bureau, affordability, and alternative data. Once approved, Planet42 purchases the car from the dealership and rents it to the customer, securing the asset with tracking technology and comprehensive and mechanical insurance. (DISRUPT Africa)
The recent funding round included $15 million in equity funding co-led by Naspers and ARS Holdings, with participation from existing and new shareholders, and $75 million in credit from Rivonia Road Capital, along with $10 million in debt financing from private investors.
Since its last funding in 2021, the company’s business has grown 4X, it has purchased over 5,000 cars in South Africa in the last 12 months alone, and nearly 1,000 dealerships have been added to the Planet42 network.
The startup recently launched in Mexico, with over 250 cars already delivered to customers.
Grant Wing, South Africa managing director and country manager of Planet42, said that the company is committed to breaking down the barriers that South Africans face in accessing cars. He added that their mission is to empower people to create a brighter future for themselves and to be a part of their journey towards financial inclusion and success.
Andrew Rolfe, general partner at ARS Holdings, who joins Planet42 as a member of its supervisory board, said that he is thrilled to support the company’s expansion and improve the lives of thousands of individuals who face limited access to private transportation.
He added that Planet42 has a proven innovative, cash-generating, and globally scalable model.
Related Story: Moove, An African Mobility Platform And Financier, Raises $105M
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