Planet42, a South African auto subscription firm, has acquired $30 million in debt and equity capital to help it expand internationally.
Its first cars are now on the road in Mexico, and the company hopes to deliver one million cars worldwide by 2025.
Planet42 last raised money in a loan round in December, and it has now secured a US$30 million round that includes both stock and debt.
Naspers led the $6 million equity round, which included current investors Change Ventures and Startup Wise Guys, as well as unicorn founders Martin and Markus Villig (Bolt) and Ragnar Sass (Pipedrive).
Existing debt investors such as Lendable contributed an additional $24 million.
Planet42, which began as CarGet in 2017, works with dealerships around South Africa to provide its mostly unbanked customers with access to a personal vehicle.
Client applications are processed using an automated scoring algorithm based on the credit bureau, affordability, and alternative data.
If the application is granted, Planet42 examines the customer’s validation documents before acquiring and renting the vehicle from the dealership.
Tracking technologies, as well as comprehensive and mechanical insurance, are used to protect the asset.
“Having a personal car may seem like an unnecessary luxury in London, but it can completely transform your life in Johannesburg.” A personal-automobile allows you to get to work on time, apply for jobs that are further away from home, drop the kids off at school, and visit Grandma,” said Eerik Oja, co-founder and CEO of Planet42.
Naspers Foundry CEO Fabian Whate expressed his satisfaction at becoming the first South African investor to back Planet42’s next phase of expansion.
The new money will be used to buy automobiles and continue Planet42’s quick expansion in the South African market, as well as to launch growth in Mexico.
Since 2017, the firm has acquired roughly 7,000 automobiles for people who have been unfairly overlooked by banks, and it has set an ambitious worldwide aim of supplying one million cars to people experiencing transportation inequity by 2025.
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