Naspers-backed, South Africa-based Planet42, a car rent-to-buy service, has raised ZAR300 million ($16.1 million U.S.) in equity and debt from Standard Bank Group. The investment consists of ZAR50.0 million in equity and a ZAR250 million credit facility.

Launched in 2017 by co-founders Eerik Oja and Marten Orgna, Planet42 (formerly Carget.co.za) had previously raised a total of $150 million, including $100 million in equity and debt from ARS Holdings, Naspers Foundry and Rivonia Road Capital in February last year.

Since its launch, the company has provided more than 20,000 vehicles to customers and expanded to Mexico in 2021. Planet42 said the funding would be used to increase its inventory of cars.

The latest investment marked “a significant stride in our mission to combat transport inequality in South Africa,” Planet42 said in a LinkedIn post.

“This investment not only solidifies our commitment to making personal vehicles accessible to more South Africans but also amplifies our ability to foster financial inclusion and economic empowerment.”

The company serves those who can’t afford car ownership due to a lack of access to traditional financing. Once their application has been approved, they can choose a car from any of 1,000 dealers working with Planet42. The latter then buys the vehicle for the client to rent on a subscription basis.

The client can continue to rent the car indefinitely, return it after six months or acquire it outright for a buy-out price that decreases every month.

“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,” the bank said in a news release.

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