In 2017, Estonians Eerik Oja and Marten Orgna founded Inclusion OÜ, a car rental service company operating under the brand name Planet42.

The company began by purchasing cars for individuals in South Africa who were unable to secure loans from local banks. In 2021, the company expanded its operations to Mexico.

Over seven years of operation, the company raised nearly €115 million, securing tens of millions of euros in unsecured loans from investors.

Throughout its entire period of operation, the company never achieved profitability on an annual basis.

In 2023, the company's revenue was €32.9 million, but it reported a loss of €20.3 million. According to the financial report, the company had total liabilities of nearly €97 million, with assets amounting to €86 million – €11 million less than its liabilities.

At the end of July, the company announced financial difficulties and the suspension of loan repayments.

On August 15, CEO Eerik Oja promised to inform investors about the future of the company. However, as of 2:00 p.m., investors had not yet received the promised update.

Investment advocate Kristi Saare, who has also invested her own money in the company, talked to Vikerraadio about why people choose to invest in startups with poor financial indicators. She explained that it often stems from a belief that the business model will eventually succeed.

The host asked her how she reacted to the news that Planet42 had announced a suspension of loan repayments.

"No investor likes to receive such news, where money is supposed to come in, but for some reason, it doesn't. However, this is one of the inevitable risks that come with investing, especially in high-risk startup investments. Not every investment is going to succeed," Saare said.

The host pointed out that Äripäev had reported a year ago that the company's cash flow was negative and that it was highly dependent on loan capital.

Saare responded by noting that the business model of startups is inherently different.

"With startup investments, one must understand that the business model of a startup is somewhat different from that of a traditional company, like one that sells cucumbers or bread. Startups are inherently about trying something new, testing a new business model. The more capital-intensive the field is, as in the case of Planet42, where cars need to be purchased, the likelier it is that loan capital is used," Saare explained.

She added that on paper, the financial indicators of startups often look grim, but the belief that the business model will work keeps investors interested.

When asked whether Planet42 would continue to operate and if investors would get their money back, Saare said it is difficult to assess.

"The company is expected to present an action plan today. From what I've read in the media, it seems like the company is no longer operating, but in reality, cars are still being rented to people, they are driving on the streets, and people are making their rental payments. The prediction that everything will go to zero might seem a bit pessimistic to me, but it is indeed challenging for the company to regain trust. Raising additional funds to save the company, for example, would be nearly impossible," she said.

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