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Car subscription startup Planet42 raises $100m to accelerate global expansion
Planet42, a car subscription startup addressing transport inequality, has raised $100m in combined equity and debt funding. Founded in 2017 in Estonia, Planet42 has operations in South Africa and Mexico.
Planer42 leadership team | image supplied
The $15m equity round was co-led by Naspers and ARS Holdings, with participation from existing and new shareholders, including Rivonia Road Capital, who also provided a $75m credit facility.
Private investors contributed a further $10m in debt financing. The funds will enable Planet42 to rapidly scale its business and meet its ambition of providing one million cars worldwide.
In 2021 Planet42 raised $6m in equity and $24m in debt financing. Since then, the company has nearly quadrupled the size of its business and purchased well over 5,000 cars in South Africa in the last 12 months alone.
In South Africa, nearly 1,000 dealerships have been added to the Planet42 network. Planet42 buys the customer’s chosen car and rents it out to them on a subscription basis.
Grant Wing, South Africa managing director and country manager of Planet42, says:
Planet42 is committed to breaking down the barriers that South Africans face in accessing cars. The struggle for credit, particularly for car finance, has been an ongoing challenge for millions of people in the country, even a decade ago, when the economy was arguably in better shape, and we understand the significant impact that this has on people’s lives. Essentially, no car equals lower standards of living and, in many cases, no income at all. Our mission is to empower people to create a brighter future for themselves, and we are proud to be a part of their journey towards financial inclusion and success.
“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,” says Andrew Rolfe, general partner at ARS Holdings, who joins Planet42 as a member of its supervisory board.
