PepsiCo Inc.’s South African development fund and local lender Absa Group Ltd. are backing an innovative mobile marketplace designed to empower farmers in South Africa. The platform, Khula Pty Ltd., enables farmers to sell their products, access logistics, receive technical expertise, and secure financing, with a vision to revolutionize the agricultural landscape.
Empowering Farmers Through Technology
Khula’s mobile app has already garnered 20,000 users, ranging from emerging farmers to commercial operators. The app has set an ambitious target of raising R200 million in funding by mid-year, with R126 million already secured in a funding round led by E Squared Investments. Co-founder and CEO, Karidas Tshintsholo, revealed that the company plans to expand its reach in South Africa and beyond, including potential pilots in East Africa and Latin America.
PepsiCo, through its Kgodiso Development Fund, plays a pivotal role in supporting Khula’s platform, with the global food giant being the largest buyer on the app’s closed trading platform. This platform allows pre-approved farmers to sell their goods directly to buyers from supermarkets and other institutions.
A Rising Star in Agricultural Tech
Khula’s growth has been remarkable, with its valuation increasing tenfold since its seed-funding round in 2023. The company’s success is underscored by the demand for innovative solutions that bridge the gap in Africa’s agricultural infrastructure. Africa is home to some of the world’s fastest-growing populations and has vast untapped agricultural potential, with over 60% of its workforce involved in agriculture and 60% of the world’s uncultivated arable land.
Despite this potential, the continent still faces significant challenges, including food insecurity and the need for greater investment in agricultural infrastructure. The African Development Bank (AfDB) has noted a financing shortfall of up to $65 billion annually in the sector.
Khula aims to tackle these challenges by connecting farmers with buyers and investors, helping them scale operations, and providing the necessary tools for success.
AI-Driven Solutions for the Agricultural Sector
One of the platform’s standout features is its use of artificial intelligence (AI) to support farmers in improving their yields. By incorporating AI into its software models, Khula helps farmers identify crop diseases, offering solutions and advice. For example, a farmer can take a picture of a rotten tomato, and the app will diagnose the issue, providing detailed information on how to address it.
Khula is also exploring new ways to offer funding to farmers, further supporting them in expanding their agricultural businesses. With off-take agreements already in place, Khula has secured buyers committed to purchasing about R1 billion worth of produce from emerging farmers over the next three seasons.
Expanding Horizons and Supporting Sustainability
With its Series A funding round set to scale operations, Khula’s founders are not only focused on growth in South Africa but also looking toward the broader African market and even international expansion. The goal is to equip farmers with the tools, expertise, and market access they need to succeed, driving agricultural sustainability and food security across the continent.
In a rapidly evolving industry, Khula’s model of innovation and support stands out as a beacon for the future of farming in Africa.
