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Naspers Foundry has invested R54 million in Planet42, a startup that offers rent-to-own car subscriptions to people who are unable to obtain regular bank financing.
Planet42 was formed in 2017 with the goal of bridging the “mobility divide” in a country where vehicle funding is heavily reliant on access to car finance and banking history.
Naspers Foundry, a venture capital firm that invests in early-stage technology companies, has made a number of investments in the country’s innovative entrepreneurs, including minor organizations in online education and the developing fintech sector.
Planet42 has operations in both South Africa and Mexico, and Naspers Foundry stated that the funds raised in this round will be used to expand Planet42’s car inventory in both countries, “putting the company on track to achieve its ambitious global goal of providing 1 million cars to people facing transport inequality by 2025.”
“We support Planet42’s mission to make a positive impact on people’s lives by addressing transport inequality,” said South Africa CEO of Naspers, Phuthi Mahanyele- Dabengwa.
“This investment builds on Naspers’s growing mobility portfolio, which includes WhereIsMyTransport, Autotrader and OLX Autos, among others.” Planet42’s uses data sources other than the traditional credit scores to assess applicants’ risk, especially those in the under-banked segment, to provide lending to clients needing car finance.
In Mexico, where Planet42 has a presence, a large number of the population is said to be under-banked, with limited access to credit due to a high reliance on cash- only transactions, while the South African market is faced with a challenge of a lack of reliable public transportation service, making car ownership a necessity to many.
Story by : Norvisi Mawunyegah