Estonian car rental company Planet42 has suspended loan payments to investors

 

Estonian company Inclusion, the owner of car rental company Planet42 (based in the Republic of South Africa), has suspended payments to its investors. The company's founder Eerik Oja wrote a letter to investors that due to the deterioration of business activity in the Republic of South Africa, Planet42 will temporarily suspend scheduled interest and principal payments on loans in July.

According to him, the company is working on various scenarios to solve this issue and is going to send notifications to investors by August 15 about further steps.

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. The platform works on a subscription base, without the need to physically inspect or meet the customer. The startup helps people, who are unable to secure financing from traditional institutions to purchase a car.

In March 2024, the company raised €15M from South African Standard Bank. €3M was provided as equity investments and €12M as a loan in the local South African currency.

In February 2023, Planet42 raised $10M in debt financing from existing shareholders and other backers in Estonia, as well as $15M as an equity investment from Estonia's Change Ventures, South Africa's Naspers, and US angel investor Andrew Rolfe.

Planet42's existing investors are the Baltics Estonian accelerator Startup Wise Guys, founder of Estonian mobility unicorn Bolt Martin Villig, and founder of Estonian unicorn Pipedrive Ragnar Sass.