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Planet42, a South African startup that addresses transportation inequality by placing automobiles in the hands of people who cannot access regular bank loans, has acquired US$100 million in combined equity and debt capital to help it accelerate its growth.
Launched as CarGet in 2017, Planet42 partners with dealerships across South Africa to offer access to a personal car to its largely underbanked clientele.
The startup processes customer applications using an automated scoring algorithm based on 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, protect the asset.
Planet42 previously received a US$30 million debt and equity funding round in February 2021, and has now secured a further US$100 million in debt and equity investment.
Naspers and ARS Holdings co-led the US$15 million equity round, with participation from existing and new owners, including Rivonia Road Capital, who also offered a US$75 million credit facility. A further US$10 million in loan finance was provided by private investors. The investment will allow Planet42 to swiftly develop its business and achieve its goal of providing one million automobiles globally.
Since its latest investment round in 2021, the company has nearly doubled its size and purchased over 5,000 cars in South Africa in the last year alone. The Planet42 network now includes over 1,000 dealerships. After the success of the South African business model, the venture recently started in Mexico, with over 250 cars already delivered to consumers.
“Planet42 is dedicated to removing the constraints that South Africans encounter in obtaining automobiles. Even a decade ago, when the economy was probably in better form, the struggle for credit, notably for auto loans, was a constant difficulty for millions of people in the country, and we realize the huge impact that this has on people’s lives.
In essence, not having a car means inferior living standards and, in many situations, no income at all. “Our purpose is to empower individuals to build a better future for themselves, and we are delighted to be a part of their journey to financial inclusion and success,” said Grant Wing, Planet42’s South Africa managing director and country manager.
“I’m thrilled to support Planet42 as they expand worldwide and improve the lives of thousands of individuals who face limited access to private transportation, which can significantly impact their quality of life and opportunities. Planet42’s team has displayed remarkable execution, with a proven innovative, cash-generating, and globally scalable model,” said Andrew Rolfe, general partner at ARS Holdings, who joins Planet42 as a member of its supervisory board.
