The fintech startup raised $2.4 million in funding to help its growth and expansion process. Planet42 works with car dealerships across South Africa, offering access to the underbanked clientele. The startup operates an automated scoring algorithm that processes client information based on affordability, credit bureau, and alternative data.
Once approved, Planet42 analyzes the customer validation documents before buying the vehicle from the dealership and renting out to the customer. Assets are then secured with tracking technology that includes comprehensive and mechanical insurance.
Planet42 will channel the funds raised to the expansion of their vehicle portfolio. They target 100,000 cars in South Africa as of 2024. Going by the statements shared on Disrupt Africa, Planet42 CEO and co-founder Eerik Oja described ownership of a personal vehicle as a “necessity in South Africa” given the underdevelopment of public transport and in-affordability of ride-hailing services.
He points out how 24 million people across the country are credit compared with no access to finance across the country. The startup intends to expand its footprint across key emerging markets where they shall offer motorcycle purchase options, alongside vehicles.
Rait Ojasaar, one of the partners at Change Ventures, was upbeat over the potential of Planet42 in the long run.