South African agritech startup Khula has successfully raised ZAR 126 million ($6.7 million) in a Series A funding round. The investment comes from existing backers, including Absa Bank, AECI, E Squared, and PepsiCo’s Kgodiso Fund, along with participation from Khula’s founders, Karidas Tshintsholo and Matthew Piper. E Squared Investments led the round, reinforcing its long-standing support for the startup’s growth and vision.

Transforming Agriculture Through Innovation

Founded in 2016, Khula is reshaping the agricultural sector by providing farmers with access to essential resources, financing, and market opportunities. Its Inputs App enables farmers to source agricultural supplies and technical services, while its Trading Platform connects vetted farmers with major buyers. Additionally, Khula collaborates with financial institutions to de-risk lending for small and semi-commercial farmers, fostering financial inclusion within the industry.

From Humble Beginnings to Industry Disruptor

Reflecting on Khula’s journey, CEO and co-founder Karidas Tshintsholo highlighted the company’s evolution from modest beginnings to a pioneering force in agritech. “Having started a few years ago just loading spinach in the back of a VW Polo, this milestone is a testament to the dedication of our team,” he stated. Khula’s rapid expansion and impact have solidified its role as a game-changer in South Africa’s agricultural landscape.

Investor Confidence and Strategic Expansion

Khula’s existing investors reaffirmed their commitment to supporting the startup’s mission of transforming agriculture through technology and innovation. Absa Business Banking Chief Executive Faisal Mkhize emphasized the bank’s role as South Africa’s largest agricultural financier and its dedication to fostering a new era of farmers. AECI Managing Executive Quintin Cross echoed this sentiment, reiterating the company’s commitment to empowering emerging farmers with essential resources.

Opening Doors to Strategic Investors

Khula is now looking to bring in new investors as part of a second Series A close, scheduled for completion by Q2 2025. The company is specifically targeting strategic partners who can offer more than just capital, helping to drive long-term value and innovation. This additional funding will further accelerate its growth and market penetration.

Scaling for the Future

The fresh capital will be used to strengthen Khula’s presence across the South African agricultural value chain. The company aims to enhance its technology-driven solutions, expand farmer outreach, and introduce advanced agritech innovations to improve efficiency and sustainability. Beyond South Africa, Khula is also eyeing expansion into new markets, positioning itself as a leader in Africa’s evolving agricultural ecosystem.

With strong backing from institutional investors and a clear mission, Khula is set to drive significant transformation in African agriculture. By leveraging cutting-edge digital solutions, the startup is empowering farmers, optimizing supply chains, and fostering a more inclusive and efficient agricultural sector. As it continues to scale, Khula remains committed to driving growth, sustainability, and technological advancement in agritech.