Kubik, a startup focused on plastic upcycling, has secured a $1.86 million seed extension, closing its $5.2 million seed funding round. It announced an initial raise of $3.34 million in June 2023. This significant milestone not only marks Kubik’s emergence as a key player in the climate and sustainability solutions space but also positions it as the first Ethiopian company to secure a multi-million dollar investment in this arena.
The round saw participation from prominent investors, including African Renaissance Partners, Endgame Capital, and King Philanthropies, underscoring the industry’s recognition of Kubik’s potential and impact. Kubik’s innovative approach to addressing environmental challenges through technology has garnered attention and support from investors focused on driving positive change.
Founded by Kidus Asfaw and Penda Marre in 2021, Kubik’s core mission revolves around leveraging environmental technology to transform plastic waste into low-carbon, durable, and affordable building materials. By doing so, Kubik not only tackles plastic pollution but also promotes greener, cleaner development practices across Africa. The company’s products offer cost savings of at least 40% per square meter compared to traditional cement-based construction, while also emitting 5x fewer greenhouse gas emissions.
The funding infusion will enable Kubik to scale its production capacity, expand its team and market presence in Ethiopia, enhance its technology for waste traceability and environmental impact tracking, and empower female waste collectors. These strategic initiatives align with Kubik’s vision of driving sustainable growth and making a meaningful difference in communities across Africa.
Kubik’s recent achievements underscore its commitment to innovation and impact. The company recently launched a new plastic upcycling factory in Ethiopia’s Adama Industrial Park and established partnerships with key stakeholders, including the City of Addis Ababa and various social enterprises in the waste management sector. Additionally, Kubik has secured contracts with reputable clients such as Pharo Ventures and Cornerstone Development Group, further validating its market relevance and potential.
The investment case for Kubik is compelling, driven by market dynamics and the urgent need for sustainable solutions. With the global affordable housing market valued at $2.2 trillion and a deficit of over 300 million units considered affordable to the most impoverished, Kubik’s business model addresses a critical need while delivering tangible environmental benefits.
Furthermore, Kubik’s “Net Zero Plastic” programs have garnered interest from businesses looking to responsibly manage their plastic waste. Partnerships with players in the hospitality and services industry highlight the growing demand for sustainable alternatives to traditional construction materials.
Kidus Asfaw, Co-founder and CEO of Kubik, expressed excitement about the company’s future prospects and the transformative impact of the latest funding round. He emphasized Kubik’s commitment to building a brighter, greener future and delivering sustainable solutions that benefit communities and the environment.
“We are thrilled to close our $5.2 million seed funding round and welcome our stellar new investors. They have seen Kubik’s compelling market opportunity, our delivery against our strategy to date, and share our purpose-driven vision – to build sustainably and affordably to a brighter, greener future.
“Today’s fund raise will allow us to keep up with the escalating demand we’re experiencing, scale our operations further with enhanced technology, empower more female waste collectors and turbo-charge our pan-African growth ambitions. We look forward to the future with great confidence.”
Kidus Asfaw, Co-founder and CEO of Kubik
The investment in Kubik represents more than just financial backing—it symbolizes a shared vision for a more sustainable and equitable future. As Kubik continues to scale its operations and expand its footprint across Africa, it is poised to drive positive change and set new standards for sustainable construction practices on the continent and beyond.
