Planet42, a lender in South Africa formerly named CarGet, recently raised EUR 2.3 million (USD 2.6 million) in equity to expand its “rent-to-buy” service for used cars in South Africa. Neither the names of the investors – a mix of private and institutional entities – nor the sizes of their stakes have been released.
Planet42 serves “the financially excluded…people ignored by banks…due to overly strict lending criteria.” The firm manages risk through “an automated scoring algorithm and securing its assets [via] title deed, tracking technology [and] comprehensive and mechanical insurance.” Clients submit a monthly rental payment and are offered a buy-out price that declines over five years to ZAR 5,000 (USD 300). As of 2020, Planet42 has financed 1,800 cars and reports annual turnover equivalent to USD 4 million.
Verdant Capital, which has offices in the Democratic Republic of Congo, Ghana, Mauritius, Nigeria and South Africa, served as advisor on the equity raise and is seeking additional debt funding for Planet42. Verdant provides capital raising and financial advisory services as well as assisting in mergers and acquisitions in Africa.
Sources and Additional Resources
Direct contact with Verdant
Planet42 homepage
https://planet42.com/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Verdant Capital Facilitates $2.5m in Lending for Enable Capital to Support SMEs Building Internet Infrastructure in South Africa
- MICROCAPITAL BRIEF: Yabx Raising Equity to Expand Backoffice Fintech for Financial Inclusion in Nigeria
- MICROCAPITAL BRIEF: Patasente Agricultural Trading Platform Accesses Credit Line Via Verdant Capital for Onlending, Invoice Discounting in Uganda
- MICROCAPITAL BRIEF: Verdant Capital Hybrid Fund Lending $9m to LOLC to Finance MSMEs in Africa
- MICROCAPITAL BRIEF: Mogo Kenya Borrowing $7m from Verdant Capital Hybrid Fund to Boost Vehicle Ownership
