Subscription-based car ownership service provider, Planet42, has raised $100 million in equity and debt funding.
Through its early-stage investment vehicle, Naspers Foundry, Naspers co-led the $15 million equity round for Planet42 alongside ARS Holdings.
Other investors who participated in the equity round included existing and new VCs, such as Rivonia Road Capital, providing a $75 million credit facility. Planet42 also received $10 million in debt funding from private investors.
Eerik Oja and Marten Orgna founded Planet42 in 2017 as a rent-to-own car business. The startup is tackling the issue of unreliable and dysfunctional transportation systems around the globe.
The new funding will facilitate its efforts as it plans to rapidly scale operations and provide a million cars globally to people excluded from traditional car financing.
Planet42 leverages technology to mitigate risk and promote financial inclusion. The company buys second-hand cars from a network of motor dealers and provides them to customers on a subscription basis.
To access Planet42’s services and choice cars, customers sign up for a car subscription without the need for Planet42 to physically see the car or meet the customer.
The company affirms to have bought over 12,000 cars for its customers in South Africa and Mexico. It also asserts to have purchased over 5,000 vehicles in South Africa alone in the last 12 months and commenced expansion into Mexico last year, while delivering 250 cars to customers in the country.
The Mexico expansion is part of its strategy to address transport inequality on a global scale. Added to solving this issue, Planet42 uses proprietary scoring algorithms to assess risk in underbanked customer segments. These algorithms help customers find out what budget suits them and choose new or pre-owned cars from Planet42’s dealerships network.