Rentoza will use its newly-secured $6 million (R115 million) funding to expand its pay-as-you-use subscription model for renting electronic products beyond South African borders.
The local online subscription platform was established in 2017. It uses the same subscription model utilised by Netflix, Apple Music and Microsoft – allowing consumers to pay a recurring fee to access products they would not normally be able to afford,on a month-on-month basis.
Products on offer include mobile devices, tablets and laptops, and household appliances, such as fridges, microwaves, washing machines and vacuums.
The new funding round was led by Alitheia IDF and included the Vumela Enterprise Development Fund.
Alitheia IDF is a women-led and -focused private equity fund targeted at growing businesses and building African communities. Over the years, Alitheia IDF has invested in a range of companies across the African continent, such as SweepSouth and Jetstream.
Aviraag Ramdhani, co-founder at Rentoza, says the capital injection will facilitate the firm’s ambitions for market expansion and innovation.
“With this capital injection, we will allocate resources to crucial areas of the business. The funds will be deployed for asset purchases, marketing campaigns, talent acquisition and capital projects, including the highly-anticipated expansion,”says Ramdhani.
Pyi Maung, investment manager at IDF, comments: “Alitheia IDF saw a strong and complementary team of founders who have managed to scale the business efficiently with every capital raise. AIF understood the need for Rentoza’s offering in the South African market.”
The Vumela Enterprise Development Fund was established in 2009 by FNB Commercial and Edge Growth and is managed by Edge Growth Ventures. The fund says it has over the years helped foster growth and sustainability in black-owned “missing-middle” SMEs.
Mike Sage, FNB CEO of Structured Lending Solutions and a Vumela trustee, says: “Our participation in this funding round was to assist and help unlock Rentoza’s growth potential. Rentoza is part of a market segment that we believe is a catalyst for economic growth in our country.”
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