Big-four bank Absa Group has acquired a minority stake in agritech start-up Khula!App, for an undisclosed amount.
In a statement, Absa Group head of AgriBusiness Abrie Rautenbach says the acquisition will enhance the bank’s agriculture proposition for small and medium enterprises.
It will also allow Absa the opportunity to further assist with the continued expansion of the Khula proposition, potentially also into other African markets in which the bank operates.
“Amid efforts to continue building lasting relationships with our stakeholders, we are excited to further cement our relationship with Khula,” comments Faisal Mkhize, chief executive for relationship banking at Absa Group.
“As the biggest financier of agriculture in South Africa, this transaction underscores our commitment to digitisation in a way that improves efficiency and productivity, which can go a long way in making SA more competitive.”
A former MTN Business App of the Year award winner, Khula is a supply chain solution for emerging farmers, connecting them directly to the formal marketplace.
The app creates "one big virtual farm" consisting of multiple emerging farms, to crowd-source and deliver on bulk orders from supermarkets, restaurant chains and for home delivery.
In 2021, the agritech start-up reportedly received a $1.3 million (R25.2 million) seed round to scale operations across SA.
“Absa is undoubtedly a leading player in agribanking, not only in South Africa but on the continent as well,” comments Karidas Tshintsholo, CEO of Khula.
“The decision to add Absa to our capitalisation table is a very strategic and long-term decision. We are aligned in our interests and how we see the industry transforming over the next few years.”
Kgalaletso Tlhoaele, head of Absa Enterprise Development, reveals the enterprise department is constantly looking for opportunities that will make a positive contribution to SA and society.
“When we initially met with the founding members of Khula, we were amazed at their ideas, energy and commitment to make Khula work.
“This made it easy to buy into the vision of Khula and support them from an enterprise development perspective. We are very proud of the progress and growth of the business.”
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