Auto-financing company, Planet42 Raises $30m for Expansion

Planet42, a startup that fights transportation inequality by putting cars in the hands of people who are unfairly ignored by banks, has just announced a $30 million round of equity and debt financing.

The $6 million equity round was led by South African conglomerate Naspers, with participation from other existing investors including Bolt founders Martin and Markus Villig. Existing debt investors, such as impact fund Lendable, contributed $24 million.

Fabian Whate, Head of Naspers Foundry, expressed delight in the investment and acknowledged Planet42’s role in addressing the issue of transportation inequality.

“We are delighted to be the first South African investor supporting Planet42 with its next phase of growth. Planet42 is an innovative solution to addressing transport inequality in South Africa and beyond, and has the potential to unlock further economic participation. This fits in with our focus of backing purpose-driven technology businesses. Investing in Planet42 is consistent with the portfolio we’ve built to date and Naspers Foundry’s healthy pipeline of potential future investments,”

Fabian Whate, Head of Naspers Foundry.

Planet42 plans to use the newly acquired funds to purchase additional vehicles for its established market in South Africa as well as expand into Mexico.

700 dealerships and 7,000 vehicles

Eerik Oja and Marten Ogna founded Planet42 in 2017. The car subscription platform was created in response to a need to serve individuals who are unable to obtain car loans from banks due to their deemed low credit scores.

Lack of access to transportation can be a long-term impediment, perpetuating inequality and limiting economic mobility. Planet42’s proprietary algorithms determine an appropriate budget for each customer, and subscribers can select any new or used car from Planet42’s network of over 700 dealerships.

Planet42 claims that since its inception in 2017, it has purchased nearly 7,000 cars for people who have been unfairly ignored by banks. The startup purchases the car and rents it to the customer on a subscription basis; the customer can pay for the car in full at any time, and there is even a return option.

Planet42’s take on car subscription is unique because we focus on the underbanked customer and the second-hand car.

Eerik Oja, co-founder

According to the startup, the company experienced a 25% monthly growth rate in 2021 and claims that dealers who work with Planet42 experience a 26 percent increase in sales.

According to the startup, the company experienced a 25% monthly growth rate in 2021 and claims that dealers who work with Planet42 experience a 26 percent increase in sales.

1 million vehicles by 2025

Access to a personal car, even with a steady income, can be difficult in developing countries. Now that Planet42 has solved the problem in South Africa, it is turning its attention to Mexico, another country grappling with transportation inequality.

Planet42 recently purchased its first vehicles for clients in Mexico. The funds raised will be used to purchase additional vehicles for its expansion in Mexico as well as to provide additional vehicles for its South African market.

This puts the company on track to meet its global goal of providing 1 million cars to people experiencing transportation inequity by 2025.

This funding is further proof that we’re on the right path in fighting transport inequality and promoting financial inclusion

Eerik Oja