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Planet42 raised €15 million from Africa’s largest bank

In 2024, Planet42 plans to raise rand-denominated loans from new investors, said Eerik Oja, co-founder and CEO of Planet42. Photo: Planet42

Estonian company Planet42 raised 15 million euros in equity and loan capital from Standard Bank Group, Africa’s largest banking conglomerate. Eerik Oja, co-founder and CEO of Planet42, stated that this represents a strategic partnership that will open up numerous new opportunities for the company in the near future.

Planet42 provides long-term car rentals in South Africa and Mexico. Eerik Oja, co-founder and CEO of Planet42, emphasized the significance of the transaction for several reasons. Firstly, it marks the first time they raised funds in the local currency. Secondly, they joined forces with Africa’s largest bank. Out of the 15 million euros, 3 million euros were in equity, while 12 million euros were in local currency loans, reported Planet42.

“Securing loan capital in South African rand significantly enhances business efficiency and profitability. Previously, euro- and dollar-denominated loans were quite expensive,” Oja explained. However, Oja believes the strategic partnership with Africa’s banking giant is even more critical than the amount of capital raised.

Securing loan capital in South African rand significantly enhances business efficiency and profitability. 
Eerik Oja, co-founder and CEO of Planet42

“Standard Bank’s 250 million rand (approximately 12 million euros) loan investment is just the beginning. Their inclusion in Planet42’s investor circle will open up numerous additional opportunities for us. In 2024, we plan to continue raising rand-denominated loans from several new investors. These investments will enable us to expand rapidly in the South African market and help tens of thousands of people acquire personal vehicles. The market potential here is abundant,” Oja concluded.

According to Nimalan Reddy, Vice President of Corporate and Investment Banking at Standard Bank, the partnership with the Estonian startup Planet42 primarily stems from a desire to contribute to its mission. “The partnership with Planet42 reflects our commitment to promoting sustainable economic growth and bringing positive change to the communities we serve. We are pleased to support Planet42’s mission of reducing transportation-related inequality. This aligns with Standard Bank’s vision for Africa’s progress and future.”

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