South African agri-tech startup Khula has raised ZAR126 million (US$6.8 million) as part of a still-open Series A round, with investors including Absa Bank and PepsiCo.
Founded in 2018, Khula has developed an ecosystem of three platforms that addresses challenges across the agricultural value chain. Via its app, users can access a fresh produce marketplace, an input marketplace, and a funder dashboard that connects buyers and sellers to complete orders and payments.
Since first piloting the solution with roughly 400 farmers, the app has attracted more than 7,000 active users and offers in excess of 5,000 products. It is now planning further growth after securing ZAR126 million (US$6.8 million) in Series A funding, and plans to extend that round later this year.
Investors include South Africa’s Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared.
“Amid efforts to continue building lasting relationships with our stakeholders, we are excited to further cement our relationship with Khula,” said Faisal Mkhize, chief executive for relationship banking at Absa Group. “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.”
