Standard Bank makes investment to fuel Planet24’s inclusive car subscription service
Standard Bank makes investment to fuel Planet24’s inclusive car subscription service
Standard Bank created a unique debt structure for the business whilst also investing equity capital.
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By Standard Bank
Standard Bank is proud to announce that it has invested R300 million (c. $16.1 million) in Planet42, the car subscription company, which is dedicated to reducing transport inequality in South Africa.
The investment, which consists of R50 million (c. $2.7 million) in equity and a R250 million (c. $13.4 million) credit facility, serves as a testament to Standard Bank’s commitment to partnering with high-growth businesses that are solving complex problems in South Africa.
The bank acted in its capacity as a partner in the transaction, which provided Planet42 with its first rand lender. Standard Bank created a unique debt structure for the business whilst also investing equity capital and providing Planet42 with local funding to better match their needs. This partnership will enable Planet42 to further its ambitions to reduce transport inequality by purchasing more cars to empower more South Africans, in addition to the 20 000 vehicles that they have already provided in recent years. The company has already raised over $150 million (equivalent to more than R3 billion) in equity and debt, including investments from Naspers, Change Ventures, Startup Wise Guys, Bolt co-founder Martin Villig, Pipedrive co-founder Ragnar Sass and Andrew Rolfe as well as lenders such as Rivonia Road Capital.
In South Africa, access to reliable transport is essential to many aspects of daily life; however, the costs associated with car ownership can be too steep for a large number of the country’s population. Adults who cannot afford to have a car can miss out on economic opportunities, which further contributes to the persistent structural inequality.
With its inclusive service, Planet42 seeks to make car ownership possible for more people. The company developed proprietary scoring algorithms that enable them to take on customers who typically cannot qualify for traditional vehicle finance. Customers can choose a car from any of the 1,000 dealerships Planet42 has partnered with, and the company then buys the car from the dealership and rents it out to the customer on a subscription basis.
In 2023, Planet42 launched its first car marketplace at the Menlyn Park Shopping Centre in Pretoria, which extends the company’s reach and complements its online platform by offering a tangible experience for customers to explore and select vehicles. Since its launch, nearly 2,000 South Africans have taken delivery of a personal subscription car from the Menlyn Marketplace, demonstrating strong demand for flexible vehicle access solutions and affirming Planet42’s commitment to innovating the car subscription space.
Standard Bank remains committed to fostering sustainable growth and making a real difference in local communities. We are proud to have had an opportunity to support Planet42's mission of enhancing mobility and reducing transport inequality, furthering our vision of driving Africa’s progress.
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.