Planet42, a company that leverages algorithms and various data points to evaluate the credit risk of prospects before extending them a rent-to-buy offer through a subscription model has acquired $16 million from Standard Bank for loan repayments in South Africa.

The startup was founded in 2017 by Estonians Eerik Oja and Marten Orgna, The firm reports receiving over 60,000 vehicle applications monthly and has notably helped South African dealers boost their sales by an average of 26% last year. This surge in demand for its services contributed to a 37% increase in its revenue in 2023.

To date, Planet42 has acquired over 12,000 vehicles for its customers across South Africa and Mexico. In 2023, it successfully raised $100 million to expand its operations within these nations, which comprised $15 million in equity from stakeholders including Naspers Limited, a $10 million debt, and a $75 million credit facility from Rivonia Road Capital. This funding round followed the closure of Naspers' South Africa-focused technology investment fund, Foundry, although it continues to invest in startups.

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Previously, in 2021, Planet42 raised $30 million through equity and debt, including $6 million in equity and $24 million in debt financing. Additionally, in 2020, the company secured $2.4 million in a seed round and $10 million in debt in two separate instances in June and December.

Planet42 Co-Founders, Eerik Oja and Marten Orgna

The company's CEO highlighted the challenge and expense of operating in South Africa without local currency-based debt, noting that until now, the company had not acquired any rand-based debt. "This is a first step to a bigger strategic partnership for us with Standard Bank," he stated.

Planet42 operates in a competitive landscape with rivals like Autochek and Moove, which also focus on the automotive sector in sub-Saharan Africa. Autochek, similar to Planet42, serves private individuals, while Moove, known for its emphasis on ride-hailing vehicles, secured $10 million in debt funding from Stride Ventures in February 2024.

The automotive market in which these companies compete was valued at $119.28 billion in 2021 and is expected to reach $223.07 billion by 2027.