ETHIOPIA – Kubik, an Ethiopian-based startup focused on sustainable technologies, has secured seed funding of US$5.2 million.
This investment marks the first multi-million-dollar commitment to an Ethiopian company within the climate and sustainability sector.
Kubik’s innovative approach involves utilizing plastic waste to construct low-carbon buildings, thus removing this waste from the environment and fostering greener development across Africa.
Their products, which are 40% cheaper per square meter than traditional cement-based constructions, also boast a fivefold smaller carbon footprint, substantially reducing greenhouse gas emissions.
Kubik’s commitment to sustainability is further demonstrated by its strategic partnerships. Recently, the company has enhanced its operational capacity by inaugurating a new plastic recycling facility and initiating large-scale plastic sourcing.
These initiatives are in collaboration with the city of Addis Ababa and various social enterprises in the waste management sector, showcasing Kubik’s collaborative approach and its potential for future growth.
The funding round was spearheaded by African Renaissance Partners, a leading venture capital firm in East Africa, alongside Endgame Capital and King Philanthropies, which focus on climate change mitigation and extreme poverty initiatives.
The injection of funds will enable Kubik to scale up production to meet growing demand, enhance its technological capabilities, empower more women waste collectors, and pursue its pan-African expansion goals.
This aligns with the startup’s business model of transforming hard-to-recycle plastic waste into affordable building materials.
This strategy taps into the global affordable housing market, valued at US$2.2 trillion, which faces a shortage of over 300 million units considered affordable for the poorest populations.
Looking forward, Kubik plans to use the funds to increase production capacities, develop its team, boost its market presence in Ethiopia, and enhance its waste tracking and environmental impact monitoring technologies.
This strategy is part of a broader goal to expand its reach and empower more women in the waste collection sector.
Last June, Kubik raised US$3.34 million in an earlier seed funding round to focus on building material production in Ethiopia, setting the stage for further expansion across other African nations.
This round included contributions from GIIG Africa Fund, Plug & Play, Bestseller Foundation, Satgana, Unruly Capital, Savannah Fund, African Renaissance Partners, Kazana Fund, Princeton Alumni Angels, and Andav Capital.
Funds from this round were dedicated to broadening Kubik’s operational footprint throughout Ethiopia, explicitly focusing on producing innovative interlocking building materials such as bricks, columns, beams, and jambs.
These materials allow developers to construct walls without traditional cement, aggregates, and steel, showcasing Kubik’s commitment to sustainable construction technologies.
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