Rentoza enters business rescue despite raising $7.3 million

South African subscription startup Rentoza has entered voluntary business rescue after failing to raise new funding, clear its debts, and complete overdue audits. The company confirmed the move on its website on 1 July 2026, alongside supporting documents.

Rentoza lets customers access smartphones, laptops, appliances, baby gear, and fitness equipment through a monthly subscription instead of buying them outright. The company has raised a total of $7.3 million since its founding, from investors including the Mineworkers Investment Company, Alitheia IDF, the Vumela Fund, and Startupbootcamp AfriTech.

Business rescue practitioner Mpoti Moalusi has been appointed to oversee the process. He met with creditors and employees on 17 July and is expected to publish a formal rescue plan by 4 September.

Rentoza said trading will continue as usual while the plan is drawn up. However, the company has struggled for months. Over the past year, customers have complained about delayed refunds and late deliveries. Rentoza also issued a public request for proposals seeking legal help to speed up debt collection, a sign that unpaid customer balances had become a growing problem.

Business rescue is a legal process for companies in financial distress. It shields a company from lawsuits and other enforcement action while a practitioner works out a plan to save it or wind it down in an orderly way. Rentoza has opened a claims form for creditors to submit outstanding debts as part of the process.

Rentoza was founded in 2017 by Avinesh Reddy, Aviraag Ramdhani, Chris Govender, and Mishaan Ratan. It started as a peer-to-peer rental marketplace linking third-party suppliers with short-term renters. Supplier friction and thin margins pushed the company to switch to a rent-to-own model, and later to the subscription format it runs today. At its peak, it served 14,000 active subscriptions across South Africa.

The stabilization plan involves restructuring Rentoza’s balance sheet, negotiating settlements with major creditors, and finding a strategic partner or buyer to recapitalize the business.

Last updated: July 29, 2026