Investors update: February 22 2023 - SA car subscription service Planet42 raises $100m

SA car subscription service Planet42 raises $100m

Highlights

• Planet42, a South Africa-based car subscription company that buys used cars from dealerships and rents to customers via a subscription model, has raised $100 million in equity and debt from a wide range of investors.
• Naspers Foundry and ARS Holdings co-led the $15 million equity round, which saw participation from existing and new shareholders. Rivonia Road Capital provided a $75 million credit facility while private investors added $10 million in debt.
• The new funding is expected to rapidly scale Planet42’s business and provide a million cars globally to people excluded from traditional car financing.

Source: Ventureburn

Our Takeaway

Transport inequality is a significant issue globally, with only half of the world’s urban population having adequate access to public transportation. In South Africa, 70% of vehicle finance applications get rejected by banks, per Cars.co.za. Planet42 is one of the few upstarts, including Moove, Autochek, and FlexClub, focused on the African market tackling this inequality via different mobility offerings. So far, the mobility startup claims to have bought over 12,000 cars for its customers in South Africa and Mexico, through the rent-to-buy subscription model.

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Kenya inches closer to legalizing digital currencies

Highlights

• Kenya’s move to legalize various virtual monies, such as cryptocurrencies, received a major boost after the Senate resolved to develop frameworks for their operation in the country.
• The Senate Standing Committee on Information, Communication, and Technology recently resolved to engage the Central Bank of Kenya (CBK) to recognize digital currencies as legal tenders.
• The committee also publicized plans to engage other stakeholders to develop policies regarding virtual assets, services providers, and the use of crypto in Kenya to enable Kenyans to transact using digital currencies with fewer risks.

Source: ABC

Our Takeaway

Despite African governments’ mostly hostile stance on cryptocurrencies, Africa is one of the world’s fastest-growing crypto markets. But it appears regulators are warming up to digital currencies. Recently, Botswana issued the continent’s first crypto license, Nigeria was said to be discussing with Binance and Talent City about a special economic zone, and earlier on, Ethiopia’s Central Bank told crypto operators to register with the national cybersecurity agency. With these trends, including the latest in Kenya, the future of cryptocurrency trading and other digital tokens on the continent looks positive.

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YC-backed Workpay secures $2.7m for Africa expansion

Highlights

• Workpay, a Kenyan payroll startup, has secured $2.7 million in Pre-Series A funding from Launch Africa, Saviu Ventures, and a host of other VC firms.
• Launched in 2019, Workpay offers tools that enable its clients to pay salaries in local currencies across and outside Africa, file taxes, and process employee benefits.
• With the new funding, Workpay plans to expand into 40 African countries, launch a payroll engine to serve customers in more markets, and release an API to enable accounting firms to be payroll providers.

Source: Techawk

Our Takeaway

In Africa, startups digitizing the administrative stack for enterprise customers, such as Workpay, FaidiHR, SeamlessHR, Bento Africa, and Zuberi have a big market opportunity considering the growing appetite for enterprise software solutions among medium-to-large organizations on the continent. The Middle East and Africa’s cloud computing industry is expected to grow to $31.4 billion by 2026, from $14.2 billion in 2021, mainly driven by private sector funding on digital solutions.