Khula a South African agri-tech startup, has secured US$6.8 million in the initial phase of its Series A funding round, attracting investments from notable players including Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared.
Founded to solve supply chain inefficiencies in Africa’s agricultural sector, Khula provides a digital ecosystem that connects smallholder farmers with inputs, services, financing, and access to formal markets. Its platform features a marketplace for agricultural inputs, a produce trade platform, and a digital tool for managing distribution.
Backing from Industry Giants
The participation of Absa Bank, one of Africa’s leading financial institutions, signals a strong push toward financing agri-tech innovations. PepsiCo’s Kgodiso Fund, which supports food system transformation initiatives in South Africa, sees Khula as an ideal partner to empower smallholder farmers and boost food security. Meanwhile, AECI, a diversified chemicals and agricultural solutions group, and E Squared, an impact investor, bring both strategic and operational expertise to the table.
Fueling Expansion
Khula plans to use the funds to scale its digital platform, enhance technology offerings, and expand into new regions across South Africa and other parts of the continent. The funding will also help strengthen partnerships with agro-dealers, commercial farmers, and financial service providers.
“This investment is a major milestone in our mission to transform African agriculture through technology and collaboration,” said Karidas Tshintsholo, Khula CEO and co-founder. “We are focused on building sustainable solutions that empower farmers while creating value across the agricultural value chain.”
Agri-Tech on the Rise
Khula’s raise comes amid growing interest in agri-tech solutions in Africa, as startups seek to digitize fragmented food production and distribution systems. Africa’s agri-tech sector has attracted millions in investments over the past few years, driven by the need to increase productivity and ensure food security across the continent.