Planet42, a mobility fintech providing affordable vehicle financing options in South Africa through a subscription model, has raised $100 million to expand its services internationally
Planet42, a fast-growing fintech that provides a rent-to-buy car subscription model to its numerous customers who would typically not qualify for car finance loans, has raised $100 million to drive global growth.
South Africa-based company buys used vehicles from dealerships and rents them to customers through a subscription model that ultimately allows clients to become car owners. This alternative credit method expands the scope of potential borrowers, who have the option to buy out the car at any time for the buy-out price, which decreases every month.
In South Africa, like in many other countries across the globe, the absence of a personal car is a major obstacle to prosperity, employment and educational opportunities. Traditional banking institutions fail to provide adequate financial options for car financing in regions with low bank account penetration. As we know, African countries are global leaders in mobile money solutions due to the lack of traditional banking alternatives.
Therefore, the Planet42 company aims to break down the barriers that South Africans face in accessing cars and increase their mobility options.
The fresh funding consisted of a $15mn equity round, co-led by Naspers of South Africa and ARS Holdings, with participation from existing and new shareholders, and a $75m credit facility from the US’s Rivonia Road Capital. Private investors contributed a further $10m in debt financing, as reported by local media.
The funds will enable the Planet42 network, which includes nearly 1,000 dealerships in South Africa, to rapidly scale its business internationally.