R300m funding boost for local car subscription startup Planet42

Source: Planet42 on Facebook

"The partnership with Standard Bank will enable Planet42 to buy more cars in order to empower many more South Africans, building on the more than 20,000 vehicles that have been provided to people in recent years. Planet42 is already backed by Naspers," says the company.

Planet42 has also launched its first car marketplace at the Menlyn Park Shopping Centre in Pretoria. This physical marketplace not only extends Planet42's reach but also complements its online platform, offering a tangible experience for customers to explore and select vehicles.

Since its launch, nearly 2,000 South Africans have taken delivery of a personal subscription car from the Menlyn marketplace, demonstrating strong demand for flexible vehicle access solutions.

Eerik Oja, CEO and co-founder of Planet42, says: "Having the largest banking group in Africa partnering with South Africa’s pioneering car subscription company demonstrates our joint belief in this new model of mobility.

"Lack of access to a personal vehicle not only hinders economic opportunities but can also lead to a lower standard of living and contribute to ongoing structural inequality. Having access to a personal vehicle fosters financial inclusion and economic empowerment, paving the way for a brighter and more accessible future for every South African.

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"It's incredibly significant to have a group as prestigious as Standard Bank align with this mission. Their commitment to innovation and inclusion makes them the ideal partner for us."

Nimalan Reddy, senior vice president from Standard Bank’s corporate and investment banking, says: "We were able to put together a unique debt structure for a high-growth business while also investing equity capital and becoming a partner to Planet42.

"The company was previously funded from hard currency and we were able to provide local funding to better match its needs. Our engagement with Planet42 reflects our dedication to fostering sustainable growth and making a real difference in the communities we serve.

"We are thrilled to support Planet42's mission of enhancing mobility and reducing transport inequality, furthering our vision of driving Africa’s progress."