PepsiCo Invests in South African Agritech Startup Khula to Support Expansion

In a significant move to bolster its expansion plans, South African agritech startup Khula has secured an investment from a PepsiCo fund. The undisclosed investment will play a crucial role in furthering Khula’s mission of empowering farmers through a digital platform that connects them with suppliers, buyers, and financing options.

The Kgodiso Development Fund, established by PepsiCo South Africa to support the growth of emerging farmers, spearheaded this investment. With an initial capital of R600 million ($32.7M), the fund aims to enhance market-driven programs, collaborate on innovative solutions, and scale its impact through investments.

Khula’s founders, Karidas Tshintsholo, Jackson Dyora, and Matthew Piper, have created a digital ecosystem that addresses the challenges faced by South African farmers in accessing markets and securing financing. This investment from PepsiCo positions Khula well to expand its reach beyond South Africa, leveraging PepsiCo’s global presence and supply chain.

Khula!, PepsiCo and Kgodiso Fund team. Credits: Khula

PepsiCo Africa, Middle East, and South Asia CEO Eugene Willemsen emphasized the importance of partnerships like this one in addressing local development challenges. He stated, “These partnerships tackle knowledge and skills gaps across the South African food system, leading to real, large-scale strategic transformation. Additionally, PepsiCo’s scale and reach provide farmers and producers with a new route to market.”

PepsiCo and the Kgodiso Fund join Absa, AECI, and E Squared as shareholders in Khula, demonstrating the strong support for the startup’s mission of transforming the South African agricultural sector.

The Khula! Fresh Produce Marketplace connects farmers to suppliers and allows them to sell in bulk; the Khula! Funder Dashboard connects investors with farmers; and the Khula! Inputs App connects local farmers to local and international suppliers and service providers.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard