South African mobile marketplace for farmers, Khula, has raised USD 6.7mn (ZAR 126 million) in the initial phase of its series A funding round. The round was led by existing investor E Squared Investments, with continued support from Absa Group, AECI and the Kgodiso Development Fund, part of PepsiCo.
The newly acquired funding will be used to broaden Khula’s footprint in the agricultural value chain, provide greater support to farmers and drive innovation.
According to Bloomberg, Khula aims to raise USD 10.7mn in total (ZAR 200mn) by mid-year.
Additionally, the company is considering expanding into new African markets which, based on recent figures released by the Agricultural Business Chamber of South Africa, should provide significant opportunities, as the rest of Africa remains the country’s largest agricultural export market.
Agricultural exports reach record high
South Africa’s agricultural exports rose to USD 13.7bn in 2024, reflecting a 3% increase from the previous year and driven by a strong fruit harvest, recovery in livestock and carry-over grain stocks from the previous season.
Key export products included citrus, grapes, maize, apples, pears, wine, nuts, fruit juices, sugar, berries, avocados and beef.
Exports by region
Africa accounted for 44% of total exports, with maize, wheat, sugar, apples, pears and fruit juices among the most traded goods.
Asia and the Middle East followed with a 21% share, dominated by citrus, nuts, wool, berries, and beef exports. The European Union accounted for 19% of exports, primarily consisting of citrus, grapes, wines and various fruits.
The Americas held a 6% share, while the rest of the world, including the UK, accounted for 10%.