South African AgriTech startup Khula has raised an impressive R126 million from its existing investors, including Absa Bank, AECI, E Squared, and PepsiCo’s Kgodiso Fund.
The round also saw contributions from Khula’s founders, Karidas Tshintsholo and Matthew Piper, with E Squared Investments leading the charge as the first institutional backer of the startup.
AgriTech, or agricultural technology, refers to innovations that enhance efficiency and productivity across the farming industry. This includes digital platforms, smart farming tools, and data-driven solutions aimed at solving critical challenges in agriculture.
Khula has been at the forefront of this sector, developing an ecosystem that empowers farmers by providing access to essential resources, financing, and market opportunities.
“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, it is the culmination of the dedication and incredible work that the Khula team delivers on a daily basis,” says CEO and Co-Founder Karidas Tshintsholo.
The startup is now opening doors to new investors who wish to participate in the second part of the Series A investment round, set to close by the end of Q2 2025.
Khula is specifically seeking strategic investors who align with its mission and can contribute more than just capital.
“As the biggest financier of agriculture in South Africa, we are committed to enabling financial inclusion and supporting a new era of farmers,” says Faisal Mkhize, Chief Executive at Absa Business Banking.
“Congratulations to the Khula team. We are excited to be part of the Khula! growth story and look forward to the innovation and transformation that the next phase of investment will unlock.”
Khula has established itself as a game-changer in AgriTech, addressing pain points throughout the agricultural value chain. Its Inputs App connects farmers with agricultural supplies and technical services, while its Trading Platform links vetted farmers to leading buyers. Additionally, the company collaborates with financial and developmental institutions to de-risk lending for small and semi-commercial farmers.
“E Squared Investments has been privileged to support the Khula founding team since the early stages of their journey, witnessing their evolution into an innovative, high-impact AgriTech platform,” says Gladwyn Leeuw of E Squared Investments.
“This Series A round reflects the strong confidence that existing investors have in Khula’s vision and execution. As the lead investor, we are proud to back the team in reaching the first close and remain committed to supporting their growth. We welcome values-aligned, strategic investors to join us in accelerating Khula!’s expansion and deepening its impact in transforming the agricultural sector.”
The funding will be used to fortify Khula!’s footprint in the South African agricultural value chain, empower more farmers, and introduce cutting-edge intelligent innovations. Expansion into new markets is also on the horizon as Khula! continues to redefine the future of agriculture in Africa.
AECI, another key investor, first backed Khula! in 2020, motivated by the pressing challenges in the emerging farmer sector.
“As AECI, we have established ourselves as a leader in the commercial farming sector with agrochemical and plant nutrition inputs, but we remain committed to supporting emerging farmers,” says Quintin Cross, Managing Executive of AECI Plant Health.
“Their success is vital for the broader agricultural landscape, which is why we’ve chosen to participate in the Khula! Series A funding round. This investment reinforces our long-term commitment to empowering this market and ensuring its sustainable growth alongside Khula.”
With a powerful network of investors and a mission-driven approach, Khula is set to revolutionize the agricultural sector, proving that technology can be the key to unlocking growth, sustainability, and success for farmers across South Africa and beyond.
