South African agri-tech startup Khula has raised ZAR126 million (US$6.8 million) in Series A funding, with key investors including Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared. The funding round, which remains open for additional investment later this year, will help Khula scale its innovative agricultural marketplace and support its mission to enhance food security and efficiency across South Africa’s farming industry.
Founded in 2018, Khula has built a comprehensive digital ecosystem designed to tackle key challenges within South Africa’s agricultural value chain. Its platform consists of three core solutions:
- The Fresh Produce Marketplace, connecting farmers directly with buyers, helping them gain better market access.
- The Inputs Marketplace, allowing farmers to purchase essential supplies such as seeds, fertilizers, and equipment from verified suppliers.
- The Funder Dashboard, which streamlines access to financing, ensuring farmers can secure capital to expand their operations.
Since its initial pilot with 400 farmers, the platform has grown to over 7,000 active users and now offers a diverse catalog of more than 5,000 agricultural products. The new investment will allow Khula to scale operations, enhance its digital infrastructure, and expand into new markets, reinforcing its role as a game-changer in Africa’s agri-tech landscape.
Strategic Investment to Drive Agricultural Transformation
With the agriculture sector facing challenges such as supply chain inefficiencies, financial barriers, and market access limitations, Khula’s tech-driven approach has attracted investment from leading financial and industry players. The startup’s focus on digitization, transparency, and efficiency aligns with broader efforts to strengthen Africa’s food production systems.
“Amid efforts to continue building lasting relationships with our stakeholders, we are excited to further cement our relationship with Khula,” said Faisal Mkhize, Chief Executive for Relationship Banking at Absa Group. “As the biggest financier of agriculture in South Africa, this transaction underscores our commitment to digitization in a way that improves efficiency and productivity, which can go a long way in making South Africa more competitive.”
The Future of Khula and Agri-Tech in South Africa
With this funding, Khula aims to broaden its farmer network, enhance supply chain efficiencies, and improve digital financial services for smallholder and commercial farmers. The investment also strengthens the company’s ability to work with agribusinesses, food retailers, and policymakers to foster a more inclusive and resilient agricultural ecosystem.
As Khula continues its mission to revolutionize agriculture through technology, its success highlights the growing role of agri-tech solutions in addressing food security challenges, improving farmer incomes, and modernizing Africa’s agricultural sector.
