Planet42, a South African auto subscription company that purchases used vehicles from car dealerships and rents them to consumers on a subscription basis, has raised $100 million in debt and equity.
This latest round of funding includes a mix of equity, a credit line, and debt.
With a $15 million equity round, Naspers Foundry and ARS Holdings jointly led the round.
Both current and new investors participated in the equity round, including Rivonia Road Capital, which contributed a $75 million credit line.
In addition to $10 million in debt financing from other private investors.
To determine the risk in underbanked consumer groupings, Planet42 uses its own unique scoring systems.
Also, using its algorithms, buyers can select new or used cars from Planet42’s network of dealerships based on their budget.
In emerging economies, “safe and dependable transit is a vital driver of social and economic inclusion. When public transportation is frequently unreliable, painfully slow, unsafe, and typically all of those things at once, it makes it easier for people to access opportunities like jobs, education, and government services. “We are here to make transport more accessible and are constantly working to make Planet42’s car subscription offering accessible to people unfairly ignored by banks,” co-founder and CEO Eerik Oja said.
With the new funding, the company will be able to expand quickly and offer one million cars to people who cannot get standard auto finance.
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