Planet42 secures USD 3.4 million in equity funding from Naspers to enhance its vehicle financing services for underbanked South Africans and to support expansion into the Mexican market.

Target Information

Planet42 has successfully raised USD 3.4 million in equity financing through a strategic investment from Naspers, a prominent investor in South Africa. This infusion of capital was facilitated via Naspers Foundry and serves as a precursor to the company's upcoming Series A fundraising round scheduled for 2022.

Specializing in alternative vehicle financing, Planet42 operates a Rent-To-Buy model aimed at underbanked consumers in South Africa, who are often overlooked by traditional banks. Utilizing proprietary scoring algorithms, the company enhances the inclusivity of its client vetting process by analyzing a broader array of data points than conventional banking systems. Following approval, Planet42 acquires the selected vehicle from one of its 700 affiliated dealerships, renting it to the client.

Industry Overview in South Africa

The automotive finance industry in South Africa is undergoing significant transformation as traditional banking solutions fail to adequately address the needs of numerous consumers. With many South Africans lacking access to conv