South African Car Subscription Startup Planet42 Raises USD 100 M Funding Round

South African startup Planet42, a car subscription platform addressing transport inequality by putting cars in the hands of people who cannot access traditional bank credit, has raised USD 100 M in combined equity and debt funding to help it accelerate its expansion. The USD 15 M equity round was co-led by Naspers and ARS Holdings, with participation from existing and new shareholders, including Rivonia Road Capital, which also provided a USD 75 M credit facility. Private investors contributed a further USD 10 M in debt financing. The funds will enable Planet42 to rapidly scale its business and meet its ambition of providing one million cars worldwide.

Planet42 partners with dealerships across South Africa to offer access to a personal car to its largely underbanked clientele. The startup uses an automated scoring algorithm to process client applications based on credit bureau, affordability, and alternative data. If the application is approved, Planet42 analyses the customer’s validation documents before purchasing the car from the dealership and renting it to the customer. The asset is secured with tracking technology, as well as comprehensive and mechanical insurance.