South African agri-tech startup Khula has successfully raised ZAR 126 million (US$6.8 million) in its ongoing Series A funding round, with major investors including Absa Bank and PepsiCo. This funding will support Khula’s expansion as it continues to transform Africa’s agricultural sector through digital innovation.
Founded in 2018, Khula has built a three-platform ecosystem that addresses challenges in the agricultural value chain. Through its mobile app, users can:
Access a fresh produce marketplace – Connecting farmers with buyers for seamless transactions.
Use an input marketplace – Allowing farmers to purchase essential supplies like seeds and fertilizers.
Leverage a funder dashboard – Helping businesses facilitate payments and financial transactions in the agricultural sector.
Growth and Expansion Plans
Since its initial pilot with 400 farmers, Khula has grown significantly, now boasting:
✔ Over 7,000 active users
✔ More than 5,000 products available
✔ Strong investor backing from Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared
Following this $6.8 million investment, Khula plans to expand its platform and services, with an additional funding round expected later this year.
Investor Confidence in Khula’s Vision
Financial leaders view Khula’s tech-driven approach as a game-changer for South Africa’s agricultural sector. Faisal Mkhize, CEO of Relationship Banking at Absa Group, emphasized the importance of digital transformation in agriculture:
> “As South Africa’s largest agricultural financier, we are committed to digitization that enhances efficiency and productivity. This investment strengthens our partnership with Khula, positioning the country as a competitive force in agriculture.”
What This Means for African Agriculture
Khula’s rapid growth highlights the increasing adoption of agri-tech solutions across Africa. With strong financial backing and a growing user base, the company is well-positioned to drive sustainable farming, economic growth, and digital transformation in the region.
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