South Africa’s Planet42 Secures USD 16 M Funding From Standard Bank

Planet42, a South Africa-based car subscription company, has raised USD 16 M (R300 million) in local-currency debt and equity funding from Standard Bank to repay costly euro-denominated loans. The recent funding comes a year after raising USD 100 M in equity, credit facility, and debt. The company has so far raised approximately USD 150 M. 

Founded in 2017 by two Estonians, Eerik Oja and Marten Orgna, 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.