Plastic upcycling startup Kubik has secured a $1.9 million seed extension, building upon its initial equity investment announcement. The latest funding round includes contributions from African Renaissance Partners, an East African venture capital firm; Endgame Capital, known for its focus on climate change technologies; and King Philanthropies, an investor dedicated to addressing climate issues and extreme poverty.
This capital infusion arrives as Kubik expands its operations in Ethiopia, particularly in Addis Ababa, where it has inaugurated a factory. The company transforms plastic waste into interlocking building materials such as bricks, columns, beams, and jambs in this facility. CEO and co-founder Kidus Asfaw stated that Kubik plans to strengthen its presence in Addis Ababa while preparing for pan-African expansion starting in 2025.
Using proprietary technology, Kubik’s approach involves upcycling plastic waste into “low-carbon, durable, and cost-effective” building materials. Asfaw indicated the company’s intention to license out this technology to accelerate pan-African and global growth.
“We aim to address urban challenges through a truly circular business model. Initially, we are focused on demonstrating the viability of this model in Ethiopia. Subsequently, we will expand to other markets to showcase the versatility of our business model in various contexts. Ultimately, we envision transitioning into a company that licenses this technology,” explained Asfaw, who co-founded Kubik with Penda Marre in 2021.
According to Asfaw, Kubik’s products enable developers to construct walls without relying on cement, aggregates, or steel, thereby streamlining construction processes and reducing costs by “at least 40% per square meter”. Cost efficiency is critical in construction, and the availability of affordable building materials offers a more viable option for developers involved in affordable housing projects.
Kubik’s materials have undergone rigorous safety testing by the European standards agency Intertek. This testing assessed factors such as strength, toxicity, and flammability, confirming their compliance with safety standards.
