Rentoza has a problem

Appliance and gadget subscription service Rentoza has come under fire as customers take to social media and consumer review platforms to complain about long delays in product deliveries and refunds.

Rentoza lets customers rent various products without a credit check over three, six, 12, or 18 months without a credit check. Customers can cancel and return the items at any time.

It lists smartphones, laptops, gaming consoles, kitchen appliances such as fridges, baby strollers, and fitness equipment like treadmills for rent.

A customer who contacted MyBroadband about their experience said they had applied to Rentoza for an Xbox Series S in February, which was approved. About a week after that, they ordered a treadmill.

Rentoza denied their application for the treadmill, saying it had received more than one application from the same household in quick succession.

However, Rentoza demands payment up-front when you apply for a product, promising that your money will be refunded within 7–14 business days.

Almost two months later, the customer who contacted us had not received the Xbox or their money back.

Looking at Rentoza’s Facebook, Twitter/X, and Hello Peter pages suggests that this is a widespread issue. The platforms are flooded with similar complaints from people asking about their refunds and the items they ordered, or reporting problems with cancellations.

“Rentoza is just horrible,” one person posted. “Waited 2 months for an order that I’m pretty sure would never have arrived. Cancelled the order and have been waiting for a refund for another 2 months.”

Another said that she placed her order on 26 February and completed her account verification on 1 March, only to be strung along.

“For weeks, I have been gaslighted and misled with vague responses, empty promises, and no real updates,” she said.

“After numerous back-and-forth emails, they finally admitted that their supplier has a stock shortage! Something they could have been honest about from the start. Instead, they wasted my time with canned responses and zero accountability.”

She said Rentoza offered her three options: keep waiting with no ETA, select an alternative despite no suitable replacement being available, or cancel her order.

For cancellations, Rentoza promises to process refunds within 3–5 business days — however, many of the online complaints also mention problems with that.

“There is no real customer service here, just scripted replies and a complete lack of ownership,” she said.

In addition to these complaints, Rentoza published a request for proposals in January seeking professional legal services to “enhance debt collection efforts”.

Given the flood of complaints about delivery delays and refunds, this raises questions about whether Rentoza is facing cash flow problems.

Rentoza responds

MyBroadband contacted Rentoza co-founders Chris Govender and Mishaan Ratan for comment.

We asked why Rentoza takes money upfront, how long refunds usually take, and what is causing the delays in delivering products to people whose applications were approved.

Ratan, the chief marketing and strategy officer, responded and said the issues affect less than 2.3% of their overall customer base.

“First, we want to acknowledge the challenges faced by a small portion of our customers, including delays with deliveries and refunds,” he said.

“We process refunds on a daily basis — due to either unsuccessful applications or cancellations — and all outstanding refunds should be finalised by next week,” he said.

“As a rapidly scaling subscription business, we are continuously refining our processes, technology, and customer support to improve our customers’ experience. We take these concerns seriously and are actively bringing on additional talent to help address them.”

Regarding taking payment up-front, Ratan said their application process was designed around a pay-as-you-use framework, like other subscription-based models.

“However, we recognise the friction this can create, and we are actively working on upgrading our technology stack to reduce these pain points in the future,” he said.

“We also ensure that no subscriber is billed for an active subscription if they have yet to receive their product.”

Ratan also carefully skirted the issue that Hello Peter charges companies to respond to customers who complain on its platform.

“We appreciate all feedback, whether via social platforms or directly to our support team,” he said.

“While we do not currently maintain an official presence on HelloPeter, we address every concern brought to our attention and are reviewing ways to engage more effectively with users on that platform.”

Ratan then pointed us to their Google reviews.

“Our Google reviews reflect many satisfied customers, underscoring our ongoing dedication to customers and our journey to service excellence,” he said.

While Rentoza has a 3.5-star rating in Google reviews across over 1,500 posts, scrolling through them still reveals a huge number of people complaining about delivery delays and lack of refunds.

One of the more polite complaints came from Jacques Kotze.

“I am writing to follow up on my refund request, which I submitted almost a month ago. Unfortunately, I have yet to receive any updates or communication regarding the status of my refund,” he said.

“The lack of response and action is very concerning, and I find this level of service to be unacceptable. I kindly request that you provide me with an update on the status of my refund as soon as possible. Your prompt attention to this matter would be greatly appreciated.”

Another person didn’t mince her words.

“They always have an excuse for not making a payment back into your account. No one phones back. Only computer replies! I will NEVER refer anyone to Rentoza! BAD BAD BAD!!!!!” she wrote.

Ratan told MyBroadband that they remain focused on resolving outstanding issues quickly.

“We value the patience of those who have been affected,” he said.

“By continuously improving our offerings, enhancing our technology, and maintaining open communication, we aim to deliver a seamless subscription experience for every Rentoza customer, which is always a work in progress as we are the only product subscription business in the market.”

Startup darling

Founded by four friends in 2017, Rentoza was initially conceived as a platform allowing regular people to list their unproductive or “lazy” assets for rent. Its low-cost rental model was backed by insurance underwritten by Old Mutual Insure.

In 2019, Rentoza was one of eleven tech startups selected by Startupbootcamp AfriTech for its incubator programme.

Shortly after that, it pivoted towards a more traditional product rental business. It now also offers rent-to-own options.

The Mineworkers Investment Company provided the startup with a R20-million capital allocation through its MIC Khulisani Ventures fund.

In September 2023, Rentoza secured $6 million (R113 million) in a funding round led by Alitheia IDF, a women-led and women-focused private equity fund.

Other investors in the round include the Vumela Enterprise Development Fund, which focuses on fostering growth in black-owned SMEs, and Edge Growth Ventures.

Edge Growth announced at the time that it would manage the funding.