Planet42, a South African automobile subscription platform that addresses mobility inequality by placing cars in the hands of individuals who do not have access to traditional bank credit, has raised ZAR300 million (US$15.6 million) in debt and equity capital from Standard Bank to help it grow.
The rent-to-buy car subscription company will get ZAR50 million (US$2.6 million) in equity in addition to a ZAR250 million (US$13.2 million) credit facility as part of Standard Bank’s ZAR300 million (US$15.8 million) investment.
After announcing a US$100 million debt and equity investment round in February 2023, among other rounds, Planet42 has already raised over US$150 million in capital.
Originally called CarGet, Planet42 launched in 2017 and collaborates with dealerships all over South Africa to provide its primarily underbanked clientele with access to a personal vehicle.
The startup processes customer applications using an automated scoring algorithm that takes into account alternative data, affordability, and credit bureau information.
After the application is accepted, Planet42 purchases the vehicle from the dealership and rents it to the client after reviewing the customer’s validation documents.
The asset is protected by mechanical and comprehensive insurance as well as tracking technologies.
“Having the largest banking group in Africa partnering with South Africa’s pioneering car subscription company demonstrates our joint belief in this new model of mobility. Lack of access to a personal vehicle not only hinders economic opportunities but can also lead to a lower standard of living and contribute to ongoing structural inequality,” said Eerik Oja, CEO and co-founder of Planet42.
To empower even more South Africans, Planet42 will be able to purchase additional cars thanks to its collaboration with Standard Bank, increasing the number of vehicles donated to individuals in previous years to over 20,000.
Additionally, the business opened its first vehicle bazaar in Pretoria’s Menlyn Park Shopping Centre.
In addition to broadening Planet42’s customer base, this physical marketplace enhances its online presence by providing a more tactile environment for users to peruse and choose vehicles.
Nearly 2,000 South Africans have benefited from the Menlyn marketplace’s personal membership automobile delivery service since its introduction.
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