Planet42 has successfully raised USD 3.4 million in equity funding from leading South African investor, Naspers. Naspers invested USD 3.4 million through its Naspers Foundry business. This funding round is a precursor to a Series A capital raise in 2022.

Planet42 provides alternative vehicle finance through its Rent-To-Buy model in South Africa. The company’s target clients are the underbanked South Africans who are otherwise unfairly ignored by the local banks. The company uses its proprietary scoring algorithms to vet potential clients. These algorithms cover a wider set of data points as compared to traditional scoring systems used by banks thus making it more inclusive. Once a client has been approved, the company purchases the client’s chosen vehicle at one of its 700 partnered dealerships and rents it out to the client.

The company is now ready to tap into larger markets and is working on replicating this model into Mexico. The Mexican market has better data for credit scoring, is more sophisticated and has comprehensive integrations with service providers. The company believes that the used vehicle market in Mexico is at least 6 times larger than that of South Africa’s and has already purchased its first vehicles for clients in Mexico. The Mexican market allows Planet42 to have access to the deep US debt markets and investors who are risk tolerant.

To date, Planet42 has listed more than 7,000 cars to customers in South Africa and hopes to have purchased over 1 million vehicles for clients across its present and future markets by 2025.

This successful mandate is the third transaction for which Verdant Capital (IMAP South Africa) had acted as arranger and advisor for Planet42, having previously arranged USD 20 million debt and equity financing. This transaction further reinforces Verdant Capital’s position as a leading advisor and arranger for Inclusive Institutions in Africa.