South African AgriTech startup Khula has successfully secured R126 million in funding from existing investors, including Absa Bank, AECI, E Squared Investments, and PepsiCo’s Kgodiso Fund. This funding milestone reflects strong investor confidence in Khula’s vision and potential.
Investor Confidence and Industry Growth
The investment round also saw contributions from Khula’s founders, Karidas Tshintsholo and Matthew Piper, with E Squared Investments leading as the first institutional investor to support the startup. This highlights the growing interest in AgriTech—an industry leveraging technology to improve agricultural efficiency and productivity. Innovations in this sector include digital platforms, smart farming tools, and data-driven solutions that address key challenges faced by farmers.
Khula’s Impact on the Agricultural Sector
Khula has established itself as a leader in AgriTech, creating an ecosystem that empowers farmers with access to essential resources, financing options, and market opportunities. The company’s innovative approach is designed to support farmers and drive long-term agricultural sustainability.
Karidas Tshintsholo, CEO and Co-Founder of Khula, shared his excitement about the funding:
“The Series A is an exciting milestone for us. Having started a few years ago just loading spinach in the back of a VW Polo, this achievement reflects the dedication and incredible work of the Khula team.”
Future Investment and Growth Strategy
Khula is now inviting new investors to participate in the second phase of its Series A investment round, expected to close by the end of Q2 2025. The startup aims to attract strategic investors who align with its mission and can offer additional value beyond financial support.
Faisal Mkhize, Chief Executive at Absa Business Banking, reiterated the bank’s commitment to financial inclusion in agriculture:
“As the biggest financier of agriculture in South Africa, we are committed to enabling financial inclusion and supporting a new era of farmers.”
Khula’s Innovations and Solutions
Khula addresses pain points throughout the agricultural value chain through innovative digital solutions:
- Inputs App: Connects farmers with essential agricultural supplies and technical services.
- Trading Platform: Links vetted farmers with leading buyers.
- Financial Collaborations: Works with financial and developmental institutions to reduce risks associated with lending to small and semi-commercial farmers.
Strong Backing from Investors
Gladwyn Leeuw of E Squared Investments highlighted the firm’s ongoing support for Khula:
“E Squared Investments has supported Khula since its early stages, witnessing its evolution into a high-impact AgriTech platform. This Series A round reinforces strong confidence in Khula’s vision and execution.”
AECI, another key investor, first backed Khula in 2020, recognizing the urgent challenges faced by emerging farmers. Quintin Cross, Managing Executive of AECI Plant Health, emphasized the company’s commitment:
“AECI has been a leader in the commercial farming sector, but we remain dedicated to supporting emerging farmers. Their success is vital to the broader agricultural landscape.”
A Promising Future for AgriTech in Africa
The funds raised will be used to strengthen Khula’s presence within the South African agricultural value chain, empower more farmers, and introduce advanced intelligent innovations. With plans for expansion into new markets, Khula is poised to redefine the future of agriculture across Africa.
With a strong network of investors and a mission-driven approach, Khula is proving that technology can be a game-changer for sustainable growth and success in the agricultural sector.
