Simplified Tech News Reporting

Planet42 Raises $100m Funding Round

The SA car subscription startup offers access to a personal car to its largely underbanked clientele.

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Planet42 has raised US$100 million in combined equity and debt funding to help it accelerate its expansion. The US$15 million 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 US$75 million credit facility. Private investors contributed a further US$10 million in debt financing. The funds will enable Planet42 to rapidly scale its business and meet its ambition of providing one million cars worldwide.

The startup uses an automated scoring algorithm to process client applications based on the 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.

Planet42 last raised capital in the form of a US$30 million debt and equity funding round in February 2021, and has now secured a further US$100 million, also made up of both debt and equity investment.

Grant Wing, South Africa’s managing director and the country manager of Planet42, said: “Planet42 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. 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.”

Andrew Rolfe, the general partner at ARS Holdings, said: “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. Planet42’s team has displayed remarkable execution, with a proven innovative, cash-generating, and globally scalable model.”


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