South African AgriTech startup Khula has successfully secured a remarkable R126 million in funding from its existing investors, which include prominent names such as Absa Bank, AECI, E Squared Investments, and PepsiCo’s Kgodiso Fund. This funding round marks a significant milestone for the company, highlighting the confidence that investors have in its vision and potential.
The investment round also saw contributions from Khula’s founders, Karidas Tshintsholo and Matthew Piper, with E Squared Investments taking the lead as the first institutional investor to back the startup. This collaboration underscores the growing interest in AgriTech, a sector dedicated to leveraging technology to enhance efficiency and productivity within the agricultural industry. AgriTech encompasses a wide range of innovations, including digital platforms, smart farming tools, and data-driven solutions designed to tackle critical challenges faced by farmers.
Khula has positioned itself as a leader in this dynamic sector, creating an ecosystem that empowers farmers by granting them access to vital resources, financing options, and market opportunities. The company’s commitment to supporting farmers is evident in its innovative approach to addressing the needs of the agricultural community.
Karidas Tshintsholo, CEO and Co-Founder of Khula, expressed his enthusiasm about the funding, stating, “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.” This statement reflects the journey of Khula from humble beginnings to becoming a significant player in the AgriTech landscape.
As part of its growth strategy, Khula is now inviting new investors to participate in the second phase of its Series A investment round, which is expected to close by the end of the second quarter of 2025. The startup is particularly interested in attracting strategic investors who not only provide capital but also align with its mission and can offer additional value.
Faisal Mkhize, Chief Executive at Absa Business Banking, emphasized the bank’s commitment to fostering financial inclusion in agriculture, stating, “As the biggest financier of agriculture in South Africa, we are committed to enabling financial inclusion and supporting a new era of farmers.” He congratulated the Khula team and expressed excitement about being part of the company’s growth story, anticipating the innovations and transformations that the next phase of investment will bring.
Khula has established itself as a transformative force in the AgriTech sector, effectively addressing pain points throughout the agricultural value chain. Its Inputs App connects farmers with essential agricultural supplies and technical services, while its Trading Platform facilitates connections between vetted farmers and leading buyers. Additionally, Khula collaborates with financial and developmental institutions to mitigate risks associated with lending to small and semi-commercial farmers.
Gladwyn Leeuw of E Squared Investments shared his perspective on the funding round, stating, “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.” He noted that this Series A round reflects the strong confidence that existing investors have in Khula’s vision and execution. As the lead investor, E Squared remains committed to supporting Khula’s growth and welcomes other values-aligned, strategic investors to join in accelerating the company’s expansion and enhancing its impact on the agricultural sector.
The funds raised will be utilized to strengthen Khula’s presence within the South African agricultural value chain, empower more farmers, and introduce advanced intelligent innovations. The company also has plans for expansion into new markets, as it continues to redefine the future of agriculture across Africa.
AECI, another key investor, first supported Khula in 2020, driven by the urgent challenges facing the emerging farmer sector. Quintin Cross, Managing Executive of AECI Plant Health, remarked, “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.” He highlighted the importance of their success for the broader agricultural landscape, reinforcing AECI’s long-term commitment to empowering this market and ensuring sustainable growth alongside Khula.
With a robust network of investors and a mission-driven approach, Khula is poised to revolutionize the agricultural sector, demonstrating that technology can be a powerful catalyst for unlocking growth, sustainability, and success for farmers throughout South Africa and beyond.
