Rentoza built its business on a simple pitch: you do not have to buy a smartphone, you can just subscribe to one. Now the company that made that offer to thousands of South Africans is the one struggling to keep the lights on.
Rentoza, one of the country's best-known subscription companies, entered voluntary business rescue, a formal process meant to save a struggling firm, on 1 July 2026. It was founded in 2017 by four friends: Avinesh Reddy, Aviraag Ramdhani, Chris Govender and Mishaan Ratan. The company grew to 14,000 active subscriptions across South Africa, offering technology products, appliances, baby gear and fitness essentials.
Built on the phone in your pocket
For most customers, this came down to one thing. Roughly 70% of Rentoza's subscribers used the service to get access to a desirable smartphone they could never afford otherwise. To fund that growth the company ran funding rounds, including raising R20 million from the Mineworkers Investment Company in 2022.
The money eventually ran short. Rentoza says its financial distress stemmed from an inability to secure funding to support the business, made worse because it failed to complete its audits for the 2024 and 2025 financial years, which in turn hampered its ability to raise more. Liquidity pressure from reduced cash flow left it unable to pay creditors over the following six months. The strain was not sudden: in an open letter in May, chief executive Avinesh Reddy acknowledged that over the past 18 months Rentoza had grown faster than its operations could support, as more customers joined and more products were added while the systems and teams behind the scenes did not keep up.
What happens next
For now, the doors stay open. The business will continue trading in the ordinary course while a rescue plan is constructed. Mpoti Moalusi was formally appointed as the business rescue practitioner on 1 July 2026, and a first meeting with creditors and employees took place on 17 July. He must publish the rescue plan by 4 September 2026, after which he will engage creditors to consider and approve it.
Whether that plan can turn 14,000 subscriptions back into a viable business, or simply manage a wind-down, is the question every Rentoza customer will now be watching.
