South African agritech startup Khula, founded in November 2016 by Jackson Dyora, Karidas Tshintsholo, and Matthew Piper, has secured R126 million ($6.7 million) in the first tranche of its Series A funding round. This investment signals robust investor appetite for technology-driven solutions aimed at revitalising the continent’s agricultural sector. The internal round, drawing continued backing from existing shareholders including Absa Group, AECI Limited, E Squared Investments, and PepsiCo’s Kgodiso Development Fund, underscores the company’s traction in a market ripe for disruption.
The mobile marketplace, which connects farmers with buyers and provides access to crucial logistics, technical expertise, and financing, has rapidly gained ground in South Africa, amassing 20,000 users ranging from smallholder to commercial operators. Khula is now targeting R200 million by mid-year to close its Series A, with the remainder of the round open to external investors seeking a stake in Africa’s rapidly growing agritech landscape.
E Squared Investments, an existing investor, has taken the lead in this round, marking its transition to Khula’s first institutional backer. This commitment, alongside the renewed investment from all previous shareholders, serves as a significant endorsement of Khula’s business model and its potential to scale impact across the continent.
“To have all our existing investors re-invest in this round is an incredible vote of confidence,” stated Karidas Tshintsholo, co-founder and CEO of Khula. “It demonstrates their belief in our team and the work we’ve undertaken thus far. This funding will be instrumental in scaling our operations in South Africa, reaching more farmers, and initiating pilot programmes in new markets across Africa and potentially Latin America.”
PepsiCo’s Kgodiso Development Fund, established as part of South Africa’s equity-equivalence programme compelling multinationals to invest in local initiatives, is a key strategic partner. The food and beverage giant is notably the largest buyer on Khula’s closed trading platform, facilitating direct sales from pre-approved farmers to major retailers and other bulk purchasers. This streamlined supply chain is critical in a region where fragmented markets and logistical hurdles often hinder agricultural productivity and profitability.
Khula’s ambitions extend beyond South Africa’s borders. With Africa holding approximately 60% of the world’s uncultivated arable land and a rapidly growing population heavily reliant on agriculture for employment, the continent presents a vast, yet largely untapped, agricultural opportunity. However, significant challenges persist, including infrastructure deficits and a substantial financing gap estimated by the African Development Bank at $65 billion annually.
Technology, and specifically platforms like Khula — conceived by founders Jackson Dyora, Karidas Tshintsholo, and Matthew Piper to address these very challenges — are increasingly viewed as crucial in bridging this gap. By providing farmers with a digital gateway to markets, resources, and expertise, Khula aims to enhance efficiency, reduce post-harvest losses, and ultimately boost agricultural output. The integration of artificial intelligence into Khula’s software, enabling features such as crop disease identification, further underscores the company’s commitment to innovation within the sector.
Since its seed funding round in 2023, Khula’s valuation has reportedly increased tenfold, reflecting investor optimism in its growth trajectory. As the company opens its doors to new strategic investors to complete its Series A, it is poised to play a pivotal role in transforming African agriculture.
The focus on East Africa and potentially Latin America for pilot programmes highlights Khula’s broader vision. By leveraging its proven model and adapting it to diverse agricultural ecosystems, the company aims to contribute to food security and economic empowerment across emerging markets. While details on the specific operational scale and timelines for this expansion remain to be disclosed, the Series A funding provides a solid foundation for Khula to cultivate its pan-African aspirations.
The success of Khula’s funding round arrives at a critical juncture for African agriculture. As the continent strives to reduce its reliance on food imports and unlock the potential of its vast agricultural resources, innovative, tech-driven solutions are attracting increasing investor attention. Khula’s ability to secure significant backing from both existing and new investors will be closely watched as it embarks on its next phase of growth, potentially setting a precedent for agritech investment across the continent.