Standard Bank partners with Planet42 to broaden access to personal vehicles
Standard Bank has partnered with Planet42 in a R300m deal that will enable the mobility start-up to shake up the passenger car market by broadening access to personal vehicles and reducing transport inequality in South Africa.
The funding by Standard Bank consists of R50 million in equity and a R250 million credit facility, marking the first time Planet42 has received debt funding on South African Rand since the company was founded in 2017.
“We were able to put together a unique debt structure for a high growth business while also investing equity capital becoming a partner to Planet42
“Our engagement with Planet42 reflects our dedication to fostering sustainable growth and making a real difference in the communities we serve. We are thrilled to support Planet42's mission of enhancing mobility and reducing transport inequality, furthering our vision of driving Africa’s progress."
The partnership with Standard Bank will enable Planet42 to expand its fleet of vehicles to be rented out to qualifying customers, using the car-subscription model.
Planet42, backed by media and internet company Naspers, raised a combined equity and debt of round of $100 million in 2023.
"A personal car fosters financial inclusion and economic empowerment, paving the way for a brighter and more accessible future for every South African. It's incredibly significant to have a group as prestigious as Standard Bank align with this mission, their commitment to innovation and inclusion makes them the ideal partner for us,” CEO
With Standard Bank coming on board as its first bank lender, the transaction is likely to trigger further equity and debt investment as Planet42 looks to scale up its business across the emerging markets where it sees the growth potential.
For Standard Bank, the transaction ties in with its broader vision of fostering inclusive growth and development in Africa, where it has