Planet42, a South African car subscription startup, has secured a $10 million debt financing round from Lendable Inc.
This debt funding follows a $2.4 million seed raise in early 2020, in a round led by Change Ventures.
The startup was launched as CarGet by Eerik Oja and Marten Orgna in 2017. It helps to provide financing for millions of South Africans that have to endure a dangerous and inefficient public transport system every day.
Since then, Planet42 has bought more than 2,000 cars for people who would otherwise not have access to a personal vehicle.
Planet42 plans to use the new funding to scale its South African operations with the goal of purchasing 100,000 cars by 2024. The company is also considering options to expand into other emerging markets and plans to raise a Series A round in 2021.
“Our ambition is to make mobility accessible to everyone who can afford it, including the people that banks deem ‘blacklisted’, which comprise more than 90% of our clientele,” says Eerik Oja, the CEO and co-founder of Planet42.
“We’ve already signed up over 300 car dealerships across South Africa, but there are still several thousand to go. And that’s just the first market we have tackled. This round will open more doors in South Africa and beyond for us.”
Planet42 uses a proprietary scoring algorithm to automatically assess the risk of individual customers. If the decision is favourable, the customer will choose a suitable car from any dealership that Planet42 has partnered with.
The company then purchases the car from the dealership and rents it to the customer on a subscription basis.
The assets are secured with tracking technology, as well as comprehensive and mechanical insurance.
“Planet42 has proved its ability to grow even through the current pandemic.
“We fully share their mission of improving people’s lives through access to mobility, and are thrilled to provide backing to expand Planet42’s impact in South Africa,” states Hani Ibrahim, Chief Investment Officer at Lendable.
