Rentoza, a South African-based online subscription platform, has secured a significant boost in funding with investments totalling $6-million, led by Alitheia IDF and including the Vumela Enterprise Development Fund.
According to Aviraag Ramdhani, co-founder at Rentoza, the capital injection will boost 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.
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.
Sam Tennant, partner at Edge Growth Ventures, says that Rentoza provided the attractive combination of a large market opportunity supported by an innovative scalable solution and an exceptional management team.
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 comments: “With this capital injection, we will propel our growth trajectory and 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.”