South African tech company enters business rescue

Rentoza, one of South Africa’s best-known subscription companies, entered voluntary business rescue on 1 July 2026.

The business will continue trading in the ordinary course while the business rescue plan is constructed, the company said in a statement.

Rentoza was founded in 2017 by four friends, Avinesh Reddy, Aviraag Ramdhani, Chris Govender, and Mishaan Ratan.

Their aim was to make it easy and affordable for South Africans to get access to the latest technology products and appliances.

The company initially focused on a rental marketplace that connects third-party suppliers with customers seeking short-term rentals.

However, supplier friction and low revenue led them to switch to a rent-to-own platform and, later, to a subscription model.

“Through every pivot, our mission was to remove the burden so people can get the gear they need, when they need it,” the founders said.

“Rentoza has a mission to democratise and dematerialise ownership of technology devices and appliances.”

The company believed that the subscription economy would enjoy strong support in Africa, and it wanted to be the leader in this sector.

It embarked on funding rounds to achieve this goal, which included raising R20 million from the Mineworkers Investment Company in 2022.

This money was used to scale their on-demand subscription platform and e-commerce ecosystem in South Africa.

There was a strong focus on smartphones. 70% of its subscribers used the service to get access to a desirable smartphone they could never afford otherwise.

The company grew to 14,000 active subscriptions across South Africa, offering technology products, appliances, baby gear, and fitness essentials.

However, the cracks started to show last year, with a flood of client complaints about delivery delays and refunds.

Rentoza also published a request for proposals seeking professional legal services to enhance debt collection efforts. This pointed to financial problems.

Rentoza enters business rescue

On 1 July 2026, Rentoza entered voluntary business rescue. It will continue trading while the business rescue plan is constructed.

Mpoti Moalusi was formally appointed as the business rescue practitioner on 1 July 2026 and will oversee the process.

Rentoza explained that its financial distress stemmed from its inability to secure funding to support the business.

The company also failed to complete its audit for the 2024 and 2025 financial years, which hampered its ability to raise funds.

Another problem was that liquidity pressures from reduced cash flows led to an inability to pay creditors in the ensuing six months.

The aim of the business rescue proceedings is to rehabilitate the company and improve its financial situation.

The short-term stabilisation strategy will focus on liquidity support and preservation, maintaining lean operations, and cost reduction.

The long-term plan includes seeking funding or a strategic partner, restructuring the balance sheet, and reaching a settlement with creditors.

The first meeting with creditors and employees took place on 17 July 2026, which provided a look at the company’s current situation.

The business rescue practitioner will publish the business rescue plan by 4 September 2026, after which he will engage with creditors to consider and approve the plan.

Should this go as planned, he will implement the business rescue plan, settle with creditors, and introduce potential equity partners.