This funding will be used to pay off more expensive euro-denominated loans.

The recent investment adds to the $150 million Planet42 has raised to date, including $100 million secured in 2023.

Founded in 2017, the company uses data and algorithms to assess credit risk and offer customers flexible car rental or purchase options.

The company currently focuses on South Africa and Mexico, where they boast over 12,000 delivered vehicles.

Their 2023 funding round included $15 million in equity, $10 million in debt, and a $75 million credit facility.

This investment highlights a shift for Planet42, previously relying solely on foreign currency loans.

“Operating without local currency debt was extremely expensive,” stated the company’s CEO.

The Standard Bank funding signifies a potential “bigger strategic partnership” as per the CEO.

In Africa, Planet42 faces competition from companies like Autochek, which caters to individual car ownership needs, and Moove, which focuses on ride-hailing vehicles in parts of sub-Saharan Africa.