South African agritech start-up Khula! has successfully raised R126 million in fresh funding from its existing investors and is now looking for new backers to further boost its growth.
For over a decade, tech companies operating in the agricultural sector have been highly successful in attracting investment. One notable example is Cape Town-based Aerobotics, which made headlines in 2020 by securing R100 million from Naspers as part of a $17 million (R253 million at the time) funding round.
Now, Khula! is following suit. On Monday, the company announced that its latest funding round was led by E Squared Investments, its first institutional investor, with continued support from Absa, AECI, E Squared, and PepsiCo’s Kgodiso Fund. In addition, co-founders Karidas Tshintsholo and Matthew Piper personally contributed to the round, reinforcing their commitment to the company’s mission.
This latest capital injection builds on Khula!’s impressive funding history. Since its launch in 2016, the start-up has attracted significant investment, including $1.3 million in seed funding from AECI and E Squared Investments in 2020, as well as backing from Absa and PepsiCo in 2023 for an undisclosed amount.
Seeking Strategic Investors for Further Expansion
With fresh funds secured, Khula! is now setting its sights on the second phase of its Series A investment round, which is expected to close by the end of Q2 2025.
“We are now inviting new investors to join this phase—specifically those who align with our mission and can contribute beyond just financial backing,” the company said in a statement.
These new funds will be used to strengthen Khula!’s footprint in South Africa’s agricultural sector and expand its efforts to help farmers grow their businesses. The company is also planning to launch new products, improve market access for farmers, and explore new markets.
A Digital Marketplace Transforming Agriculture
At its core, Khula! is a digital marketplace that connects both small- and large-scale farmers with customers, streamlining transactions in the agricultural industry. The company has developed a suite of tech-driven solutions to address challenges faced by farmers and buyers alike.
Among its key offerings are:
- An inputs app that helps farmers source agricultural supplies and access technical services.
- A trading platform that connects vetted farmers with major buyers of agricultural products.
- Financial partnerships aimed at boosting lending to small and semi-commercial farmers, who typically struggle to secure funding from traditional financial institutions.
From Humble Beginnings to a Major Milestone
Reflecting on the company’s journey, CEO Karidas Tshintsholo described the Series A funding round as a major milestone, considering Khula!’s modest beginnings.
“It’s incredible to think that just a few years ago, we were loading spinach into the back of a VW Polo. This funding round is a testament to the hard work and dedication of the entire Khula! team,” he said.
SA Tech Start-ups on the Rise
Khula!’s funding success is part of a broader trend of South African tech start-ups attracting significant investment.
- In February, satellite component manufacturer CubeSpace, a spin-off from Stellenbosch University, raised R55 million in a funding round led by asset manager Futuregrowth.
- Also in February, former SAA CEO Vuyani Jarana secured over R400 million for Ilitha Telecommunications, a venture aiming to connect 500,000 low-income households to the internet.
- In January, Naked Insurance, an AI-powered insurtech company, announced it had raised $38 million (approximately R706 million) in a Series B extension round.
A 2024 report from the SA Venture Capital and Private Equity Association (Savca) highlighted this ongoing growth, revealing that South African start-ups secured R3.28 billion in funding in 2023, largely fueled by investment in local tech companies.
With agritech playing an increasingly crucial role in South Africa’s economy, Khula!’s latest funding round signals strong investor confidence in the sector’s future.
Photo: Tshilidzi Matlala of E Squared Investments and Karidas Tshintsholo from Khula! Picture: SUPPLIED
