Image Credits: Khula
SA-based agritech startup, Khula, has closed the first tranche of its Series A funding round with $6.7 million. In a move that reflects continuer support from investors in Khula’s mission to revive the nation’s agricultural sector, the internal round drew participation from existing investors like Absa Group, AECI Limited, E Squared Investments, and PepsiCo’s Kgodiso Development Fund.
Khula was founded by Jackson Dyora, Karidas Tshintsholo, and Matthew Piper in November 2016. Its mobile marketplace connects farmers with buyers and provides access to much-needed logistics, technical capabilities, and financing. The marketplace has rapidly gained ground in the South Africa, accruing over 20,000 users who include smallholder and commercial operators. Khula has now set a funding target of $10.6 million by mid-year to close its Series A, while opening the remainder of the round to external investors who seek to purchase a stake in Africa’s growing agritech sector.
E Squared Investments, an existing investor, made the transition to become Khula’s first institutional backer after it led the round. If anything, this shows strong investor confidence in Khula’s business model and its potential to expand its impact across the continent.
“To have all our existing investors re-invest in this round is an incredible vote of confidence. It demonstrates their belief in our team and the work we’ve undertaken thus far. This funding will be instrumental in scaling our operations in South Africa, reaching more farmers, and initiating pilot programmes in new markets across Africa and potentially Latin America.” said Karidas Tshintsholo, co-founder and CEO of Khula.
Another key partner in Khula’s mission is PepsiCo’s Kgodiso Development Fund, created as part of South Africa’s efforts to persuade multinationals to invest in local initiatives. The food and beverage giant is notably the largest buyer on Khula’s closed trading platform, facilitating direct sales from pre-approved farmers to major retailers and other bulk purchasers.
Khula is looking beyond the boundaries of its host nation. Africa is home to an approximated 60% of the world’s uncultivated arable land and a population that relies on agriculture for employment. This situation presents a massive agricultural opportunity, an opportunity that has been nipped in the bud by infrastructure inadequacies and financing challenges.
Khula’s technological capabilities will provide farmers with a digital gateway to markets, resources, and expertise, Khula aims to enhance efficiency, reduce post-harvest losses, and ultimately boost agricultural output. The integration of artificial intelligence into Khula’s software, enabling features such as crop disease identification, further underscores the company’s commitment to innovation within the sector.
Since its seed funding round in 2023, Khula’s valuation has reportedly increased tenfold, reflecting investor optimism in its growth trajectory. As the company opens its doors to new strategic investors to complete its Series A, it is poised to play a pivotal role in transforming African agriculture.
