Planet42, a South Africa-based company that buys used vehicles and rents them to customers through a subscription model, has raised $100mn to drive its global growth.
Founded in 2017 by Estonian investors Eerik Oja and Marten Orgna, the mobility startup also has operations in Mexico.
Citing a release by Planet42, a South African publication, Biz Community reported on Wednesday (February 22) that the $15mn equity round was co-led by Naspers of South Africa and ARS Holdings, with participation from existing and new shareholders, including the US’s Rivonia Road Capital, who also provided a $75m credit facility. Private investors contributed a further $10m in debt financing, the title reported.
“The funds will enable Planet42 to rapidly scale its business and meet its ambition of providing 1mn cars worldwide. In 2021 Planet42 raised $6m in equity and $24m in debt financing. Since then, the company has nearly quadrupled the size of its business and purchased well over 5,000 cars in South Africa in the last 12 months alone,” Biz Community writes.
In South Africa, nearly 1,000 dealerships have joined the Planet42 network. The company plans to scale its business and provide 1mn cars worldwide to people who would ordinarily not qualify for funding under traditional models.
Grant Wing, South Africa managing director and country manager of Planet42, said the startup is committed to breaking down the barriers that South Africans face in accessing cars.
“The struggle for credit, particularly for car finance, has been an ongoing challenge for millions of people in the country, even a decade ago, when the economy was arguably in better shape, and we understand the significant impact that this has on people’s lives,” he said.
“Essentially, no car equals lower standards of living and, in many cases, no income at all. 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.”
Following the capital raise, Andrew Rolfe, ARS Holdings general partner joins Planet 42 as a member of its supervisory board.
“I’m thrilled to support Planet42 as they expand worldwide and improve the lives of thousands of individuals who face limited access to private transportation, which can significantly impact their quality of life and opportunities,” he commented.
“Planet42’s team has displayed remarkable execution, with a proven innovative, cash-generating, and globally scalable model.”