Estonian startup Planet42 has raised €2.2 million in seed funding to expand its innovative vehicle access services for underbanked customers in South Africa.

Target Company Overview

Planet42, an innovative Estonian startup, operates at the intersection of fintech and mobility services within the South African market. Recently, the company secured €2.2 million in seed funding, which will facilitate its growth and employ advanced technology to improve car access for underbanked populations. The funding round was spearheaded by Change Ventures and included contributions from notable private investors such as Martin Villig of Bolt, Ragnar Sass from Pipedrive, Marko Virkebau of MeetFrank, Kristjan Vilosius from Katana MRP, among other prominent Estonian tech entrepreneurs.

Planet42 partners with various dealerships across South Africa to provide vehicle access to individuals who often face barriers in traditional financing. According to CEO and co-founder Eerik Oja, owning a personal vehicle is crucial in South Africa where public transport options are limited and ride-sharing services can be too costly for many. The company's unique approach targets lower- and middle-income households, who generally have poor access to credit, as traditional banks focus predominantly on financing newer and expensive vehicles.

Industry Overview in South Africa

The automotive industry in South Africa represents a significant sector within the country’s economy, known for both manufacturing and retailing. The market is characterized by a large gap in vehicle ownership