When a global consumer giant backs a local startup, it is rarely just about capital. It is about confidence in markets, in people and in ideas born far from traditional centres of power.
That is the signal sent by PepsiCo’s Kgogiso Fund, which has invested in Khula, a South African agritech startup that builds digital infrastructure for farmers often left out of formal markets. The investment, announced on January 16, 2026, positions Khula for accelerated growth and underscores rising global interest in African-led solutions to food security, financing gaps and inclusive growth.
At its core, Khula is tackling one of African agriculture’s most stubborn problems. Smallholder farmers struggle to access reliable markets, fair pricing and affordable finance, leading to post-harvest losses, weak bargaining power and stalled growth. These challenges sit at the heart of a continent-wide paradox. Agriculture employs more Africans than any other sector, yet remains chronically undercapitalised, with a $65 billion annual financing gap.
Khula’s answer is technology, but grounded in local realities.
A Digital Ecosystem Built for Farmers
Khula operates a three-platform digital ecosystem that connects farmers directly to buyers, suppliers, and financiers compressing supply chains and reducing friction that has long eroded farmer incomes.
Its tools include:
- A fresh produce marketplace that links farmers directly with bulk buyers.
- An inputs app offering access to more than 5,000 agricultural products.
- A funder dashboard that connects farmers to low-interest loans.
- AI-powered crop diagnostics, allowing farmers to photograph diseased produce such as a “rotten tomato” and receive instant guidance.
The platform currently serves more than 20 000 users with over 7 000 active farmers, a sharp rise from a 400-farmer pilot in its early days. Since its 2021 seed round, Khula’s valuation has increased tenfold, signalling strong market fit in a sector where scalability has often proved elusive.
This model echoes the success of regional pioneers such as Twiga Foods in Kenya, which reshaped fresh produce distribution by formalising informal supply chains. But Khula’s ambition is broader, it embeds finance, markets and data into one system.
Why PepsiCo’s Kgodiso Fund Stepped In
The Kgodiso Development Fund, created in 2020 with $32.7 million, is PepsiCo’s Africa-focused venture arm, mandated to support Black farmers and agribusinesses while strengthening long-term supply resilience.
While the exact size of the January 2026 investment was not disclosed, PepsiCo’s involvement extends far beyond funding. Through the Kgodiso Fund, PepsiCo has become Khula’s largest buyer, providing farmers on Khula’s closed trading platform with guaranteed offtake, a critical factor in enabling farmers to plan, invest and grow.
“The investment from Kgodiso will enable Khula to continue developing innovative ways to sustainably finance emerging farmers, as well as support a marketplace that allows farmers to grow and bridge gaps to market access,” said Khula CEO Karidas Tshintsholo.
For PepsiCo, the logic is strategic. Khula’s technology aligns with its focus on precision farming, climate-smart agriculture and supply chain resilience priorities increasingly shaping global food systems as climate volatility intensifies.
“Strategic partnerships with innovators such as Khula help to address local development challenges and tackle knowledge and skills gaps across the South African food system,” said Eugene Willemsen, PepsiCo CEO for Africa, the Middle East and South Asia. “With the scale and reach of PepsiCo, this opens up a new route to market for farmers and producers.”
Capital, Credibility and Scale
PepsiCo and the Kgodiso Fund now join existing shareholders Absa, AECI, E-squared Investments, and others in backing Khula. In March 2025, the company raised $6.7 million (R126 million) in its Series A round, led by E-squared Investments with participation from Kgodiso, Absa and AECI.
Khula is targeting a $11 million (R200 million) Series A close by mid-2026, with funds earmarked for team expansion, technology upgrades and deeper penetration of the South African market before scaling internationally.
Pilots are already underway in East Africa and Latin America, leveraging PepsiCo’s global supply chain, a rare advantage for an African agritech firm seeking cross-continental growth.
Beyond Funding: Building Capability
PepsiCo’s role also includes on-the-ground mentorship and training in climate-smart agriculture, helping farmers build the operational and financial discipline required to access commercial capital independently. The Kgodiso Fund works with third-party partners to deliver business development support, ensuring that enterprises are not only funded but viable.
“The relationship with Khula is exciting because it aligns with the fund’s commitment to empower emerging farmers and promote regenerative agriculture practices that build agri-business resilience,” said Setlakalane Molepo, Chairperson of the Kgodiso Development Fund.
This emphasis on resilience is timely. Globally, agritech investment has slowed from pandemic-era highs, but capital is increasingly flowing to platforms that reduce risk, digitise supply chains and embed sustainability. Africa, with its young population and climate exposure, sits at the centre of this recalibration.
A Broader Signal for African Entrepreneurship
Khula’s rise reflects a wider shift where global corporates are no longer viewing Africa merely as a sourcing destination, but as a laboratory for innovation. From drones monitoring crop health at Aerobotics, to AI-enabled advisory tools reaching farmers with basic smartphones, African agritech is moving from experimentation to execution.
For South Africa and the continent, this investment is about more than one company. It is about food sovereignty, reduced reliance on imports and supply chains that reward producers fairly.
As Khula integrates AI deeper into its platform and extends beyond South Africa’s borders, it is testing a simple but powerful idea that African farmers, when connected to markets, finance and data, can compete at scale.
In a global food system under strain, that is not just good business. It is essential infrastructure.
