Naspers of South Africa leads a $30 million funding for auto-financing company, Planet42

Naspers of South Africa leads a $30 million funding for auto-financing company, Planet42

Global transportation inequality is being addressed by Planet 42, a startup that is putting cars in the hands of people who have been unfairly ignored by banks. The company recently announced a $30 million round of funding, which included both equity and debt investments.

Naspers, a South African conglomerate, led the $6 million equity round, which included existing investors such as Martin and Markus Villig, co-founders of Bolt, and several other angel investors. Existing debt investors, including impact investor Lendable, made an additional $24 million contribution to the total.

Managing Director of Naspers Foundry, Fabian Whate, expressed his delight at the investment and recognized Planet42's contribution to resolving the issue of transportation inequality.

Planet42 intends to use the newly acquired funds to acquire additional vehicles for its established market in South Africa as well as for its planned expansion into Mexico, which is currently underway.

700 automobile dealerships, 7,000 cars

Planet42 was established in 2017 by Eerik Oja and Marten Ogna. Individuals who are unable to obtain bank-provided auto loans due to their deemed low credit scores were the target audience for the car subscription platform, which was established in order to meet their needs.

Lack of access to transportation can be a persistent impediment, perpetuating inequalities and limiting one's ability to advance economically. Subscriptions can choose from a network of more than 700 dealerships to purchase a new or used vehicle, which is determined by Planet42's proprietary algorithms.

Founded in 2017, Planet42 claims to have purchased nearly 7,000 vehicles for people who have been unfairly ignored by financial institutions since its inception in 2017. The startup purchases the vehicle and rents it to the customer on a subscription basis; the customer has the option to pay for the vehicle in full at any time, and there is also a return option available to him or her.

Planet42 claims that it will grow at a rate of 25 percent per month by 2021, and that dealers who work with the company will see an average increase in sales of 26 percent.

One million cars by 2025

Despite having a steady source of income, access to a personal vehicle in developing countries can be extremely difficult. Now that Planet42 has successfully addressed this issue in South Africa, the company has set its sights on Mexico, which is also grappling with issues of transportation inequality.

Planet42 has recently acquired its first automobiles in Mexico for the benefit of its clients, according to the company. All of the funds raised will be used to purchase additional vehicles for the company's expansion in Mexico, as well as to supply additional vehicles to the company's South African operations.

This contributes to the company's global goal of providing 1 million cars to people who are unable to travel due to a lack of transportation by 2025.