Planet42 has announced that it has raised local currency debt and equity funding from Standard Bank Group to help the South African-focused rent-to-buy startup repay a high-value euro-denominated loan.
Eerik Oja, CEO and co-founder of Planet42, said the Naspers Ltd-backed company has raised about $150 million to date and secured a deal from Standard Bank, Africa's largest lender by assets. It reportedly received 300 million rand ($16 million) in funding.
“We have never had rand-based debt and this is obviously extremely expensive for a company operating in South Africa,” Ojha said in an interview. “This is the first step in a larger strategic partnership with Standard Bank,” he said, as the startup expands into auto loans that traditional banks typically cannot lend to certain individuals due to regulations.
Many African cities lack public transportation, requiring residents to own their own cars or use ride-hailing services. Ojha said Planet42 receives more than 60,000 car applicants every month. Bloomberg previously reported that Uber Technologies Inc. is also in talks to back African auto finance startup Move in a funding round that values the company at $750 million.
Co-founded by Oja and Marten Orgna (both from Estonia), Planet42 uses algorithms and data points to assess a potential customer's credit risk and make offers to rent or buy a car within minutes. Generate. Ojha said the company saw domestic revenue increase by 37% last year due to increased demand. “There's a lot of potential for scaling up in South Africa and perhaps other parts of Africa as well,” Standard Bank senior vice president Nimalan Reddy said in the same interview.
