Addis Ababa-based plastic upcycling startup Kubik has raised $1.9 million in a seed extension round.
The investment comes from African Renaissance Partners, Endgame Capital, and King Philanthropies.
This latest funding follows Kubik’s initial equity investment and will be used to scale its operations in Ethiopia. The company recently launched a factory in Addis Ababa that transforms plastic waste into interlocking building materials like bricks, columns, beams, and jambs.
Kubik’s Focus: Scaling Through Licensing
Kubik doesn’t just aim to be a manufacturer; it has a bigger vision. The company plans to use the funds to solidify its presence in Addis Ababa while laying the groundwork for pan-African expansion in 2025.
However, Kubik’s long-term goal is to transition into a technology licensing company. Their proprietary technology upcycles plastic waste into “low-carbon, durable, and affordable” building materials. By licensing this technology, Kubik believes they can achieve faster growth across Africa and eventually, globally.
“We want to solve problems for cities and create a truly circular business model,” says Kubik co-founder and CEO Kidus Asfaw. “We’re currently proving this model here in Ethiopia. We’ll then expand to a few more markets to demonstrate its versatility. But ultimately, we want to license out this technology for true scalability. It’s not about having factories everywhere, but about transforming the global materials industry.”
Benefits of Kubik’s Building Materials
Kubik’s technology offers several advantages:
- Faster, Cheaper Construction: Their products allow developers to build walls without cement, aggregates, or steel, significantly reducing construction time and costs (at least 40% less per square meter). This is particularly beneficial for affordable housing projects where cost is a major constraint.
- Safety: Kubik’s materials have passed safety tests conducted by Intertek, a European standards agency. These tests assess factors like strength, toxicity, and flammability.
- Environmental Sustainability: The company currently recycles 5,000 kilograms of plastic waste per day (with a maximum capacity of 45,000 kilograms). They partner with corporations and the Addis Ababa municipality to secure a steady supply of plastic waste.
Kubik’s Role in Addressing Plastic Waste
Plastic pollution is a global problem, with an estimated 430 million tonnes produced annually, two-thirds of which are for short-term use. While consumerism in developed countries exacerbates the issue, rapid urbanization and economic growth in African cities are also contributing factors.
Startups like Kubik are at the forefront of developing sustainable solutions for plastic waste management. Their innovative approach to upcycling plastic into valuable building materials offers a promising path forward for a cleaner and more sustainable future.