kubika plastic recycling startup, has raised an initial $1.9 million extension. months after announcing the 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 penchant for climate change-related technologies; and King Philanthropies, an investor in climate and extreme poverty.
The new capital comes as the startup expands its operations in Ethiopia following the launch of its factory in Addis Ababa, where it is converting plastic waste into interlocking construction materials such as bricks, columns, beams and jambs. Co-founder and CEO of Kubik Kidus Asfawtold TechCrunch that the startup intends to double its operations in Addis Ababa as it lays the foundation for pan-African growth starting in 2025.
Kubik’s approach involves recycling plastic waste into “low-carbon, durable and affordable” building materials using patented technology, which Asfaw says they will license for faster pan-African and, eventually, global growth.
“What we want to do is solve the problems of cities and that is why we are thinking about making our business model truly circular. The way we have set up our business strategy is that we are now in the focus phase to test this model here in Ethiopia. We will expand it 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 transition to becoming a company that licenses this technology,” said Asfaw, who co-founded Kubik with Penda Marre in 2021.
“That’s how we feel like we can really scale. “It is not about having factories all over the world, but about this industry adopting a new way of manufacturing materials globally,” he stated.
It said its product allows developers to erect walls without the need for cement, aggregate or steel, speeding up construction and reducing the cost to “at least 40% less per square meter.” Cost is a key barrier in construction and the availability of affordable or cheaper building materials presents a better option for developers of affordable housing projects.
Asfaw said Kubik materials have passed safety tests conducted by European standards agency Intertek, which checked, among other things, strength, toxicity and flammability.
“We don’t want to sell something that is harmful to human beings. We did not initiate sales until these reports were available,” he said.
The startup currently recycles 5,000 kilograms (and can process 45,000 if it has the capacity) of plastic waste per day. It has signed partnerships with companies and the Addis Ababa municipality for a regular supply of plastic waste. In the short term, it is studying the diversification of products to cover pavers and flooring materials.
It is estimated that the world produces 430 million tons of plastic a year, two thirds are for short-term use. Evidently, the world is choking on plastic waste, and while the situation is exacerbated by consumerism trends in developed countries, in regions facing rapid urbanization and economic growth such as african cities, plastic waste is also getting out of control and requires urgent responses. In the coming days, startups like Kubik will play a leading role in providing sustainable solutions to this threat.