Estonian car rental company Planet42 presents a rescue plan to investors

Estonian car rental company Planet42 has presented a rescue plan that would split the company's South African and Mexican businesses to investors. In August the startup suspended payments to its investors.

"After three months of intensive negotiations with all parties, the time has come to make a decision," said Planet42 co-founder Eerik Oja said in a letter sent to Estonian investors. 

Under the terms of the rescue plan, UK-registered P42 UK Ltd will pay Estonian company Inclusion OÜ €1,8M for the South African unit currently owned by Inclusion. The South African company will thus become a direct subsidiary of the UK parent company.  As a result of the restructuring, the owners and managers of the business will be predominantly local investors, while the Estonian investors will retain the Mexican line of business.

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 basis, without the need to physically inspect or meet the customer. The startup helps people, who are unable to secure financing from traditional institutions to buy a car.

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. In March 2024, the company raised €15M from South African Standard Bank.

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.