Tech Meets Agriculture as Khula Secures Fresh Funding

South African agri-tech startup Khula has secured ZAR126 million ($6.8 million) in a Series A funding round, setting the stage for further expansion. Founded in 2018, the company has developed a digital ecosystem aimed at solving key challenges in agriculture. Its platform offers a fresh produce marketplace, an input marketplace for farming supplies, and a funder dashboard that streamlines transactions between buyers and sellers.

Since its initial pilot with 400 farmers, Khula has grown rapidly, now serving over 7,000 active users and offering more than 5,000 products. With the latest funding, the startup plans to scale its operations further and is considering an extension of the funding round later this year.

Big Players Back Khula’s Vision

The investment round saw contributions from major players, including Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared. Faisal Mkhize, chief executive for relationship banking at Absa Group, expressed confidence in the partnership. “Amid efforts to continue building lasting relationships with our stakeholders, we are excited to further cement our relationship with Khula,” he stated. “As the biggest financier of agriculture in South Africa, this transaction underscores our commitment to digitisation in a way that improves efficiency and productivity, which can go a long way in making South Africa more competitive.”

As Khula strengthens its presence in the market, its digital solutions could play a key role in enhancing agricultural efficiency, improving access to resources, and boosting South Africa’s competitiveness in the global farming sector.