Planet42 received €15M from South African Standard Bank

Estonian car subscription company Planet42 has recently secured €15M in funding from South African Standard Bank. €3M was provided as an equity investment and €12M - as a loan in the local South African currency, rands.

Founded in 2017 by Estonian entrepreneurs Eerik Oja and Marten Orgna, Planet42 buys used cars from a network of car dealers and connects them with customers on a subscription basis, without the need to physically inspect or meet the customer. The startup helps individuals who are unable to secure financing from traditional institutions to purchase a car.

Planet42 has operational offices in South Africa and Mexico. It has distributed more than 12K cars to customers in South Africa, and 250 cars - in Mexico. Existing investors from the Baltics are Estonian accelerator Startup Wise Guys, founder of Estonian transport platform Bolt Martin Villig, and founder of Estonian unicorn Pipedrive Ragnar Sass.

Eerik Oja revealed that the funding will be used to improve the efficiency and profitability of the company's operations. In 2024, Planet 42 plans to raise the investment as a loan in local currency from a number of new investors. The company aims to be profitable by the end of that year. 

In February 2023, Planet42 raised $10M in debt funding from existing shareholders and other supporters from Estonia, and $15M in venture investments from Estonian Change Ventures, South African Naspers, and US business angel Andrew Rolfe.