Planet42, a South African car subscription startup, has secured $100 million in a combined equity and debt funding round to fuel its expansion plans. The platform provides personal cars to underbanked individuals who cannot access traditional bank credit by partnering with dealerships across the country. The startup uses an automated scoring algorithm to process client applications based on the credit bureau, affordability, and alternative data. Once approved, Planet42 purchases the car from the dealership and rents it to the customer, with the asset secured through tracking technology and comprehensive and mechanical insurance. The latest funding round, which includes $15 million of equity investment from existing and new shareholders, such as Naspers and ARS Holdings, brings the company's total funding to $130 million. Planet42 will use the funds to scale its business and aims to provide one million cars worldwide. The startup has already nearly quadrupled the size of its business since its last funding in 2021 and has purchased more than 5,000 cars in South Africa alone over the past 12 months. The company has also added nearly 1,000 dealerships to its network and recently launched in Mexico, with over 250 cars delivered to customers.
Grant Wing, the South Africa managing director and country manager of Planet42, said the startup is dedicated to breaking down the barriers that South Africans face in accessing cars. He added that the company understands the significant impact that the lack of access to private transportation has on people's lives and aims to empower them to create a brighter future for themselves.
The latest funding round was co-led by Naspers and ARS Holdings, with Rivonia Road Capital providing a $75 million credit facility. Private investors contributed a further $10 million in debt financing. Andrew Rolfe, general partner at ARS Holdings, will join Planet42 as a member of its supervisory board.
Rolfe praised the startup, saying he was thrilled to support Planet42's expansion plans, which will improve the lives of thousands of individuals who face limited access to private transportation. He added that Planet42's team has displayed remarkable execution and has a globally scalable model that is innovative and generates cash.
With the latest funding, Planet42 aims to accelerate its growth and bring affordable, flexible car ownership to people in emerging markets worldwide. The startup has made significant strides in South Africa, and its expansion into Mexico shows the potential for the company to bring its mission to more people in need around the world.
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