In a strategic move to enhance its financial standing and expand its fleet, Pace Car Rental, a South African car rental startup has successfully raised a substantial amount of debt through the JSE Private Placements (JPP) platform. This milestone achievement not only allows Pace Car Rental to refinance its operations at a more favorable rate but also provides the means to invest in additional fleet assets, solidifying its position in the car rental industry.
The JPP platform, a subsidiary of JSE Limited, has emerged as an innovative means for raising private capital. To date, JPP has facilitated 36 deals, collectively raising an impressive R6.1 billion (320M USD) in capital, while investors utilizing the platform boast over R18 billion (944M USD) in deployable capital.
Sam Mokorosi, Head of Origination and Deals at the JSE, expressed the significance of the JPP platform, stating, “JPP is an alternative way for companies and infrastructure projects to raise capital or attract investment. With this platform, we’re building a future-fit capital market that pairs up private debt and equity issuers with investors, including venture capital funders.”
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Pace Car Rental, a pioneering car rental business, is renowned for offering cost-effective transport solutions throughout South Africa. The company boasts ownership of a custom value chain, including maintenance, warranty issuance, tracking, and monitoring services. Grenville Salmon, Managing Director of Pace Car Rental, emphasized the transformative impact of their services, saying, “Pace helps people get that first access to the transport they need to get that sales job, start that new business, create other jobs, earn a living, transport their kids to a better school, educate their families, and get the show on the road. So many success stories start at Pace.”
Pace Car Rental expressed its pride in collaborating with JPP and, by extension, the JSE to expand its capabilities and find ideal investment partners. This funding infusion is set to accelerate the company’s mission to provide accessible and affordable transportation solutions to a wider audience.
JPP’s services are delivered in collaboration with Globacap, a UK-based capital markets technology company in which the JSE holds a minority stake. Globacap has revolutionized the securities landscape, streamlining asset creation and transferability. Currently, the platform digitally manages over $10 billion worth of private share and debt instruments for more than 80 companies and 4,300 investors.
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Sam Mokorosi emphasized the JSE’s commitment to supporting companies like Pace Car Rental, stating, “We’ll continue to support companies like Pace — robust organizations that, regardless of size, are agile and are paving the way for their respective sectors.”
With the successful debt raise on the JPP platform, Pace Car Rental is primed to further strengthen its market presence and continue its mission of making transportation accessible and affordable for all.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard