In South Africa’s automotive industry, one company has revolutionized how people access and experience car ownership. Planet42, a car subscription company founded with the vision of making mobility accessible to all, has embarked on a remarkable journey.
Planet42 is a mobility startup that offers rent-to-buy car subscriptions. Founded in 2017 by Eerik Oja and Marten Orgna in Estonia and with operations in South Africa and Mexico, Planet42 is fighting transport inequality by putting cars in the hands of people unfairly ignored by banks. By combining a proprietary scoring engine with a robust car dealership partner network, Planet42 has been able to buy cars for over 15,000 people who struggle with access to traditional vehicle financing.
Innovative Car Subscription Model:
Planet42’s disruptive car subscription model operates by purchasing used cars from dealerships and renting them out to customers through a subscription-based service. The approach not only offers flexibility and affordability but also caters to underbanked customer segments that might face challenges in obtaining traditional vehicle financing. By focusing on second-hand cars, Planet42 effectively lowers the unit cost compared to models centered on new cars, making personal vehicle access more attainable.
With over 700 dealerships in its network, Planet42 uses sophisticated algorithms to help customers find suitable vehicles based on their budget. The company’s dedication to creating a socially inclusive model has resonated, with 89% of its customers reportedly having no other means of gaining access to a personal vehicle.
Milestones and Funding:
The company raised $2.4 million in a seed round in June 2020 and secured $10 million in debt financing from Lendable in December of the same year. In 2021, the company raised $30 million in equity and debt to fund its operations and expansion into Mexico, delivering 250 cars to customers. In 2023, they raised $100 million in equity and debt from a wide range of investors.
Planet42 has been certified as a CarbonNeutral® company since 2021 by Climate Impact Partners, the leading experts on carbon neutrality and climate finance.
Future Plans:
Planet42’s growth is not limited to South Africa, as the company eyes expansion into international markets. While acknowledging the potential in other African countries, Planet42 has set its sights on Mexico, recognizing the market’s size and the significant transport inequalities present. The company has already taken its first steps in Mexico, establishing an office and employing staff. Planet42 aims to buy 1,000,000 cars for its customers worldwide.
Planet42’s journey is a testament to the transformative power of innovative business models in addressing societal challenges. By reimagining car ownership and making it more inclusive, the company has not only filled a crucial gap in the market but has also become a beacon of change in the automotive industry.
