Kubik, a plastics upgrading startup, has raised a $1.9 million expansion, months after announcing its initial equity investment. The startup’s latest investment is from African Renaissance Partners, an East African venture capital firm. Endgame Capital, an investor with a bias towards technologies around climate change. and King Philanthropies, a climate and extreme poverty investor.
The fresh capital comes as the startup scales up its operations in Ethiopia following the opening of its factory in Addis Ababa, where it turns plastic waste into interlocking building materials such as bricks, columns, beams and girders. Co-Founder and CEO Kubik Kidus Asfawtold TechCrunch that the startup plans to double its operations in Addis Ababa as it sets the stage for pan-African growth from 2025.
Kubik’s approach involves recycling plastic waste into “low-carbon, durable and cost-effective” building materials using proprietary technology, which Asfaw says will license faster pan-African and eventual global rollout.
“What we want to do is solve problems for cities and so we think of our business model as being really circular. The way we have shaped our business strategy is that we are now at the heart of the proof-of-concept phase of this model here in Ethiopia. We will expand this to a few more markets to demonstrate the diversity of the context in which this business model can work. But over time, what we really want to do is become a company that licenses this technology,” said Asfaw, who founded Kubik with Five Marres in 2021.
“That’s how we feel like we can really scale. It’s not about having factories around the world, it’s about that industry adopting a new way of producing materials globally,” he said.
He said their product allows developers to erect walls without the need for cement, aggregate or steel, making construction faster and cutting costs “at least 40% less per square metre”. Cost is a key barrier to construction, and the availability of affordable or cheaper building materials is a better option for developers of affordable housing projects.
Asfaw said Kubik’s materials have passed safety tests by European Standards Organization Intertek, which tested durability, toxicity and flammability, among other things.
“We don’t want to sell something that is harmful to humans. We have not started sales until these reports are available,” he said.
The startup currently recycles 5,000 kg (and can do 45,000 in capacity) of plastic waste per day. It has signed partnerships with companies and the municipality of Addis Ababa for the regular supply of plastic waste. In the short term, it is looking at product diversification to cover coatings and flooring materials.
It is estimated that the world produces 430 million tonnes of plastic per year, two-thirds of which are for short-term use. Clearly, the world is choking on plastic waste and while the situation is exacerbated by consumerism trends in developed countries, in areas experiencing rapid urbanization and economic growth such as African cities, plastic waste is also spiraling out of control, requiring urgent responses. In the coming days, startups like Kubik will play a leading role in providing viable solutions to the threat.
