Follow Us on Telegram For Up To Date Tech News and Reviews

NewsStartups

South Africa’s Planet42 Raises Over $16 Million from Standard Bank

Planet42

Summary

  • Planet42 has raised a total of over R300 Million (over $16 million) from Standard Bank.
  • The funding is broken down into R50 million in equity and a R250 credit facility.
  • Planet42 has so far raised over R3 billion in debt and equity from Naspers, Change Ventures, Startup Wise Guys, Bolt co-founder Martin Villig, Pipedrive co-founder Ragnar Sass and Andrew Rolfe as well as lenders such as Rivonia Road Capital.

Standard Bank has announced the investment of R300 million (over $16 million) into South Africa’s car subscription company, Planet42. The investment is broken down into two with R50 million in equity and a R250 million credit facility.

The bank acted in its capacity as a partner in the transaction, which provided Planet42 with its first rand lender. Standard Bank created a unique debt structure for the business whilst also investing equity capital and providing Planet42 with local funding to better match their needs. As a result of this funding injection, Planet42 will purchase more cars in addition to the 20 000 vehicles that they have already provided in recent years.

Planet42 has already raised over $150 million (more than R3 billion) in debt and equity from other investors including Naspers, Change Ventures, Startup Wise Guys, Bolt co-founder Martin Villig, Pipedrive co-founder Ragnar Sass and Andrew Rolfe as well as lenders such as Rivonia Road Capital.

Commenting on this funding rounds, Plane42’s CEO and co-founder Eerik Oja said, “A personal car fosters financial inclusion and ‣ economic empowerment, paving the way for a brighter and more accessible future for every South African. It’s incredibly significant to have a group as prestigious as Standard Bank align with this mission; their commitment to innovation and inclusion makes them the ideal partner for us.
EERIK OJA CEO and co-founder of Planet42

How Planet42 Works

Planet42 has a proprietary scoring algorithm that allows them to take on customers who will typically not be accepted by traditional vehicle finance companies. Customers have the option of choosing the car they prefer from any of the 1000 dealerships Planet42 partners with. The company will then buy the vehicle from the dealership and rent it out to the customer on a subscription basis.

Customers have the option to buy out the car at any time for the buy-out price, which decreases every month. After renting the car for 5 years (60 months) customers automatically have the option to buy it for R5,000. Alternatively, they can continue renting indefinitely or return the car to Planet42 at any time after the first 6 months.

In 2023, Planet42 launched its first car marketplace at the Menlyn Park Shopping Centre in Pretoria, which extends the  company’s reach and complements its online platform by offering a tangible experience for customers to explore and select vehicles. Since its launch, nearly 2 000 South Africans have taken delivery of a personal subscription car from the Menlyn Marketplace, demonstrating strong demand for flexible vehicle access solutions and affirming Planet42’s commitment to innovating the car subscription space.

Also Read: A Look into Africa’s Startup Funding Landscape with Efayomi Carr From Flourish Ventures

About author

Editor at TechArena. I cover all things technology and review new gadgets as I get them. You can reach me on email: kaluka@techarena.co.ke
Related posts
GadgetsNews

The OPPO A60 is Now Available in Kenya Starting from Ksh 30,000

News

Naivas Partners With Visa to Launch New Loyalty Cards

News

AI and open innovation: How to turbocharge sustainability in East Africa

News

Huawei kicks-off job recruitment program for Kenyan graduates

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.