ETHIOPIA: plastic recycling start-up Kubik raises $5.2 million for expansion

On April 29, 2024, Ethiopian start-up Kubik raised its latest round of seed funding, worth $5.2 million. Specializing in the recycling of plastic waste into affordable, low-carbon building materials, the start-up will use the funds to implement improved technology, which should support its expansion.

At a time when plastic waste pollution is on the rise in Ethiopia, Ethiopian start-up Kubik is banking on recycling to reduce the overflow of waste into the environment, in particular by converting this detritus into low-carbon building materials. To accelerate its activities in Ethiopia and Kenya, where it also has a presence, and to pursue its expansion in Africa, the young company has recently raised $5.2 million in seed financing from African Renaissance Partners, Net-zero focused, Endgame Capital, and King Philanthropies.

"We are extremely excited to support Kubik in the next phase of its growth. Led by a remarkable team, the technology developed by the company is enabling millions of people to benefit from better and more affordable housing conditions. From a climate point of view, cement is responsible for 8% of global greenhouse gas (GHG) emissions. Finding an alternative that is not only more sustainable, but also significantly cheaper, is an outstanding achievement", said Jinna Li and John Mairlot, Endgame Capital partners during the fund-raising.

Indeed, Kubik's products cost at least 40% less per square metre, and have chemical properties that make them safe, non-flammable and non-degradable. What's more, these products are low-carbon, with GHG emissions at least five times lower than those of cement-based products. In addition to increasing its production, Kubik will use the new financing to expand its team and presence on the Ethiopian market, reinforce its improved technology for tracing waste, and strengthen its position as a leader in the cement industry.liorized technology for tracking plastic waste and monitoring its impact on the environment, and broaden its scope of action to empower women waste collectors.

"Thanks to our 'Net Zero Plastic' programs, companies in the hospitality and service sector have committed to collaborating with Kubik and transforming their waste into Kubik products," says Kidus Asfaw, Kubik's co-founder and CEO. The company has also launched a new plastic recycling plant in Ethiopia's state-of-the-art Adama Industrial Park, and has begun large-scale plastic sourcing in collaboration with the Ethiopian capital Addis Ababa and various social enterprises in the waste management sector, etc. To achieve its goal, the start-up will also have to increase the amount of plastic waste recovered by Kubik, currently estimated at 45,000 kg per day, or 4% of the plastic waste produced on the African continent.

Start-up Kubik points out that this is its last round of seed funding. In June 2023, it raised $3.34 million, financing which also enhanced the supply potential of its eco-friendly building materials, currently estimated at over a quarter of a million square meters of wall surface each year in Africa and worldwide.

Source: www.afrik21.africa/