South African agri-tech startup Khula has successfully raised ZAR126 million (approximately US$6.8 million) in the initial phase of its Series A funding round. This investment aims to enhance Khula’s digital platform, which seeks to revolutionize the agricultural supply chain by directly connecting farmers with buyers.
Established in 2018, Khula offers a comprehensive digital ecosystem that addresses various challenges within the agricultural value chain. The platform comprises three main components:
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Fresh Produce Marketplace: Enables farmers to connect directly with buyers, facilitating improved market access.
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Inputs Marketplace: Allows farmers to purchase essential supplies, such as seeds, fertilizers, and equipment, from verified suppliers.
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Funder Dashboard: Streamlines access to financing, ensuring farmers can secure capital to expand their operations.
Since its initial pilot with approximately 400 farmers, Khula has experienced significant growth, now serving over 7,000 active users and offering a diverse catalog of more than 5,000 agricultural products.
The recent funding round attracted investments from prominent entities, including South Africa’s Absa Bank, PepsiCo’s Kgodiso Fund, AECI, and E Squared. Absa Bank, a leading financier of agriculture in South Africa, emphasized that this investment aligns with its strategy to support digital solutions that improve efficiency and productivity in the sector.
With this infusion of capital, Khula plans to scale its operations, expand its user base, and further enhance its digital infrastructure. The startup also intends to extend the Series A funding round later this year to capitalize on the increasing demand for its services.
Khula’s innovative approach and rapid growth underscore the potential of technology-driven solutions to transform agriculture, improve food security, and enhance efficiency across South Africa’s farming industry.
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