Rentoza, a South African-based online subscription platform, has raised $6 million led by Alitheia IDF and included the Vumela Enterprise Development Fund.
According to Aviraag Ramdhani, Co-Founder at Rentoza, this capital injection is set to revolutionise the e-commerce landscape through subscription in South Africa and on the African continent as it facilitates the company’s ambitions for market expansion and innovation.
Alitheia IDF is a women-led and women-focused private equity fund focused on growing businesses and building African communities. Over the years, Alitheia IDF has invested in a wide range of businesses across the African continent such as Sweep South and Jetstream.
Echoing Ramdhani’s sentiments on Rentoza’s potential, Pyi Maung, Investment Manager IDF, says: “Alitheia IDF saw a strong and complimentary 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 and how it has already impacted the lives of people in a positive way, especially for women.”
The Vumela Enterprise Development Fund was established in 2009 by FNB Commercial and Edge Growth and is managed by Edge Growth Ventures. The funder has been at the forefront of fostering growth and sustainability in black-owned “missing-middle” SMEs.
Speaking to why Vumela decided to invest in Rentoza, Sam Tennant, partner at Edge Growth Ventures, says Rentoza provided the attractive combination of a large market opportunity supported by an innovative scalable solution and an exceptional management team.
Additionally, Mike Sage, FNB’s 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 which we believe is a catalyst for economic growth in our country.”
Ramdhani says these investments are a testament to the impact of Rentoza’s vision having secured funding from two respectable and renowned funders.
“With this capital injection, we will propel our growth trajectory and allocate resources to crucial areas of the business,” says Ramdhani. “The funds will be deployed for asset purchases, marketing campaigns, talent acquisition, and capital projects, including the highly anticipated expansion.”
With the support of Alitheia IDF and Vumela, Ramdhani believes Rentoza is well-positioned for continued success. “Our growth initiatives and expansion plans will drive transformative change in the South African economy and beyond, creating accessible and flexible shopping experiences for consumers across the continent. Real access is finally coming to the continent,” Ramdhani concludes.