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SA Agri-Tech Innovator Khula Secures $6.8M Series A to Drive Digital Transformation in Agriculture

by Iyanu Ale
March 6, 2025
in Startups
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SA Agri-Tech Innovator Khula Secures $6.8M Series A to Drive Digital Transformation in Agriculture
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South African agri-tech startup Khula has secured ZAR126 million (US$6.8 million) in Series A funding as part of its ongoing round, drawing support from major investors such as Absa Bank and PepsiCo. The company, founded in 2018, has built an ecosystem that addresses challenges throughout the agricultural value chain by offering a three-pronged platform. Its mobile app connects users to a fresh produce marketplace, an input marketplace, and a funder dashboard that streamlines transactions between buyers and sellers.

After piloting its solution with around 400 farmers, Khula’s app now serves more than 7,000 active users and showcases over 5,000 products. With this new infusion of capital, the startup is poised for further expansion and plans to extend the Series A round later this year.

Key investors backing the round include South Africa’s Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared. Faisal Mkhize, chief executive for relationship banking at Absa Group, emphasized that the investment reinforces the bank’s commitment to digitisation in agriculture. “As the biggest financier of agriculture in South Africa, this transaction underscores our dedication to improving efficiency and productivity through digital innovation, which is essential for enhancing the nation’s competitiveness,” Mkhize said.

With its innovative approach and strong financial backing, Khula is well-positioned to transform South Africa’s agricultural landscape by providing farmers and agribusinesses with cutting-edge digital solutions.

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