Investors have reupped in Johannesburg-based Khula, an online platform connecting commercial and smallholder farmers to suppliers, financiers and offtakers. PepsiCo’s agriculture fund, Kgodiso Development Fund, along with South African bank ABSA, the E Squared impact fund and agri-chemicals company AECI backed Khula’s 126 million Rand ($6.7 million) Series A round.
Khula is opening up the round in the hopes of reaching a 200 million Rand ($11 million) close. The startup has increased its valuation by 10x since its $1.3 million seed round in 2021. It will leverage the funding to expand its team, strengthen its presence in South Africa and venture into new markets in Africa and Latin America.
Supporting emerging farmers
Kgodiso launched in 2022 as part of PepsiCo’s public interest commitments to spur economic growth in South Africa, following its acquisition of South African food and beverages company Pioneer Foods in 2020. The five-year, 600 million Rand ($33 million) fund aims to catalyze local job creation and procurement in South Africa via the agricultural value chain.
The fund will help emerging farmers and small agribusinesses scale to commercial viability and integrate into supply chains by providing low-interest rate debt and technical support. Half of the fund is earmarked for Black farmers and agribusinesses.
Last year, Kgodiso backed Stokka Fela, which distributes national and international fast moving consumer goods to over 2,000 “tuck” shops within South Africa’s townships.
