Planet42, a South Africa-based upstart focused on combating transport inequality by offering an inclusive car subscription service, has raised $30 million from investors to expand its operations and services.
The funding comprises $6 million equity and $24 million in debt financing and is a prequel to a larger Series-A round anticipated next year.
Billionaires.Africa gathered that the $6-million round was led by South African billionaire Koos Bekker-led Naspers Limited, in collaboration with existing investors such as Change Ventures and Startup Wise Guys, among others.
Meanwhile, the $24-million debt financing was led by existing investor, Lendable.
Lendable is a Nairobi-based financial services company that provides capital to emerging and frontier market fintech companies, bridging the gap between institutional debt investors and high-growth alternative lenders.
Planet42 is a car subscription company that buys used cars from dealers and rents to customers via a subscription model. The South Africa-based company has a goal of democratizing mobility by ensuring that all qualified South Africans who desire to own a car but cannot afford it have access to one.
As of press time, the company has rented out more than 6,000 cars to South Africans. This was made possible through a strong network of over 700 dealerships.
The company was established in 2017 by Eerik Oja and Marten Orgna. Since its inception, it has raised more than $50 million through a combination of debt and equity financing.
In June 2020, the firm raised $2.4 million in a seed round. This was followed by another $10 million raised through debt financing from Lendable in December 2020.
The company stated that the latest round will help it expand its car subscription services and operations beyond the continent. It explained that it is considering entering Mexico and has purchased its first cars for clients in the country.
Moving forward, the firm aims to have bought and distributed more than 1 million cars for clients in all its areas of operations by 2025.
