Planet42 a fintech startup based in South Africa has recently secured $2.4-million from some Estonian investors.
The fintech startup collaborates with dealerships in South Africa to provide access to personal cars for those who cant afford the luxury of car loans.
Planet42 was established by two Estonian entrepreneurs as CarGet , by Eerik Oja and Marten Orgna in 2017.
Eerik Oja was the former country manager for Mogo Finance in Estonia, while Marten Orgna the CFO, previously ran an Estonian based African Investments for Trigon Capital.
Estonian based venture capital (VC) company Change Ventures led the seed round and it got backed up by private companies including:
Katana MRP’s Kristjan Vilosius, , MeetFrank’s Marko Virkebau, Bolt co-founder Martin Villig, Pipedrive’s Ragnar Sass and others
According to the fintech startup, the investment would be use to expand its array of vehicles. Planet42 says its target cars in South Africa by 2024 is around 100 000 cars.
Planet42 also looks at expanding key emerging markets, where they can offer motorcycles and other vehicles asides cars.
The startup employs an automated scoring algorithm that processes applications of clients based on affordability and credit bureau.
On approving the application, Planet42 will validate the clients’ document by analysing bank statements, IDs and payslips. Then it would go ahead to form the deal.
According to Oja, Planret42 has grown “eight-fold” in the previous year, and has had its strongest times despite the ongoing pandemic.
“We see a huge need for people to improve their standards of living with better mobility, but a lack of options in the market to service them.
“More than 24 million people are credit impaired or have no access to finance in South Africa – that’s well over half of the adult population,” Oja added
Featured Image: eu-startups
Don’t miss important articles during the week. Subscribe to cfamedia weekly digest for updates.