South African agritech company Khula secures ZAR126 million in Series A funding to transform the local agricultural supply chain.
Khula, a South African agritech startup, has secured ZAR126 million (approximately US$6.8 million) in the initial phase of its Series A funding round. This investment, led by Absa Bank and joined by PepsiCo's Kgodiso Fund, AECI, and E Squared, marks a significant step in Khula's mission to transform the agricultural supply chain in South Africa.
Founded in 2018, Khula provides a digital ecosystem with three core components: Fresh Produce Marketplace, Inputs Marketplace, and Funder Dashboard. The Fresh Produce Marketplace facilitates direct connections between farmers and buyers, improving market access. The Inputs Marketplace enables farmers to purchase essential supplies from verified suppliers, while the Funder Dashboard simplifies access to financing for farmers.
Khula's growth and innovation demonstrate the transformative potential of technology in agricultural revolutions. The company's digital platform is contributing to the transformation of the agricultural supply chain in South Africa, with technology-driven solutions improving food security and showcasing increased efficiency across the farming sector.
Regarding expansion and growth plans, Khula is leveraging its technology platform to enhance the success of farmers across Africa, indicating a strategic push to scale its operations and increase market inclusion for small-scale farmers through its marketplace solution. Since its pilot phase with around 400 farmers, Khula has grown to serve over 7,000 active users and offers a diverse catalog of more than 5,000 agricultural products.
The latest funding round for Khula was invested by Absa Bank, PepsiCo's Kgodiso Fund, AECI, and E Squared. Absa Bank, a significant player in South Africa's agricultural sector, invested in Khula to support digital solutions boosting industry efficiency and productivity.
Khula plans to use the fresh capital to scale its operations, grow its user base, and strengthen its digital infrastructure. The startup also plans to extend the Series A funding round later this year to leverage the rising demand for its services. As Khula continues to grow and innovate, it is poised to play a crucial role in the digital transformation of the agricultural sector in South Africa and beyond.
Khula, having secured funding from Absa Bank, PepsiCo's Kgodiso Fund, AECI, and E Squared for its Series A round, is planning to utilize this venture capital to further expand and strengthen its technology-driven platform. By scaling its operations and growing its user base, the startup aims to showcase technology's pivotal role in the digital transformation of Africa's agricultural supply chain and beyond.
