Estonian-founded Planet42 raises $100M to fuel global expansion
22 February, 2023, 15:20
Estonian-founded car subscription service Planet42 has raised $100 million in combined equity and debt funding. The startup operates in the South African and Mexican markets and will use the fresh funding to facilitate its global expansion.
- Founded in 2017 in Estonia by Eerik Oja and Marten Orgna, Planet42 is a mobility startup that offers rent-to-buy car subscriptions. It addresses transport inequality with the model that allows people who are underserved by traditional banking institutions to obtain and use a vehicle.
- The platform assesses a customer’s risk level, using proprietary scoring algorithms and data science, and generates an offer to acquire a car from a car dealership of their choice. In South Africa, nearly 1,000 dealerships have been added to the Planet42 network. In Mexico, it has delivered over 250 cars to customers.
“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,”Andrew Rolfe, General Partner at ARS Holdings, comments.
- The $100 million round is a combination of equity and debt funding. Naspers and ARS Holdings co-led the $15 million equity round. Several existing investors also participated, including Rivonia Road Capital, which provided a $75 million credit facility. Other private investors contributed a further $10 million in debt financing.
- In 2021, Planet42 raised $6 million in equity and $24 million 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.
- The fresh funds will enable Planet42 to rapidly scale its business and meet its ambition of providing 1 million cars worldwide.