Kubik, a plastic upcycling startup, has raised $1.9 million in seed expansion months after announcing its first equity investment. The startup’s latest investment comes from African Renaissance Partners, an East African venture capital firm; Endgame Capital, an investor with a penchant for climate change-related technologies; and King Philanthropies, a climate and extreme poverty investor.
The fresh capital comes as the startup expands its operations in Ethiopia after opening its factory in Addis Ababa, where it converts plastic waste into interlocking building materials such as bricks, columns, beams and posts. Kubik co-founder and CEO Kidus Asfaw told TechCrunch that the startup aims to double its operations in Addis Ababa to lay the foundation for pan-African growth from 2025.
Kubik’s approach involves upcycling plastic waste into “low-carbon, long-lasting and affordable” building materials using proprietary technology, which Asfaw says will be out-licensed for faster pan-African and ultimately global growth.
“We want to solve problems for cities, so we are thinking that our business model will be truly circular. The way we have set up our business strategy is that we are now in the focus phase of testing this model here in Ethiopia. We will expand it to a few more markets to prove the diversity of context in which this business model can work. But over time we actually want to grow into a company that licenses this technology,” said Asfaw, who co-founded Kubik with Penda Marre in 2021.
“So we feel like we can really scale. “It’s not about having factories all over the world, it’s about this industry introducing a new way of producing materials around the world,” he said.
He said their product allows developers to build walls without the need for cement, aggregates or steel, speeding up construction and reducing costs by “at least 40% less per square meter.” Cost is a major barrier in construction and the availability of affordable or cheaper construction materials represents a better option for developers of affordable housing projects.
Asfaw said Kubik’s materials had passed European standards agency Intertek’s safety tests, which tested strength, toxicity and flammability, among other things.
“We don’t want to sell anything that is harmful to people. We only started selling when these reports were available,” he said.
The startup currently recycles 5,000 kilograms of plastic waste (and can recycle 45,000 kilograms of plastic waste per day at full capacity). It has partnered with companies and the Addis Ababa municipality to ensure a regular supply of plastic waste. In the near term, the company is considering product diversification to cover pavers and flooring materials.
It is estimated that the world produces 430 million tons of plastic annually, two-thirds of which is for short-term use. Clearly, the world is choking on plastic waste, and while the situation is exacerbated by consumption trends in developed countries, plastic waste in regions with rapid urbanization and economic growth such as African cities is also spiraling out of control and requires urgent action. In the coming days, startups like Kubik will play a leading role in providing sustainable solutions to the threat.