South African car subscription company Planet42 has secured $16 million (R300 million) in local-currency funding from Standard Bank to pay off expensive euro-denominated loans. This comes after a previous $100 million funding round last year, bringing their total raised amount to about $150 million.
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Planet42 has bought more than 12,000 vehicles for customers in South Africa and Mexico and aims to expand operations in these countries. Previous investments included $15 million in equity, $10 million in debt, and a $75 million credit facility. Naspers Limited, one of their shareholders, closed its technology investment fund but continued investing in startups.
Founded in 2017 by Eerik Oja and Marten Orgna, Planet42 evaluates credit risk using algorithms and data before offering car rental or purchase options through a subscription model. The company receives over 60,000 applications monthly and reports a 26% increase in dealer sales and a 37% revenue growth in 2023.
CEO of Planet42 emphasized the importance of local currency-based debt for operations in South Africa and sees the funding from Standard Bank as a strategic partnership. Competitors include Autochek and Moove, operating in a market projected to reach $223.07 billion by 2027.
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