Kubik, African Startup, Raises $5.2 Million to Tackle Climate Change and Promote Sustainability
Kubik, an Ethiopian-based startup specializing in sustainable technologies, has secured a seed funding of $5.2 million, making it the first Ethiopian company to receive a multi-million-dollar investment in climate and sustainability solutions.
Transforming Plastic Waste into Low-Carbon Buildings
Kubik utilizes plastic waste to construct low-carbon buildings, eliminating plastic waste from the environment and promoting a greener and cleaner development across Africa. Their products cost 40% less per square meter than traditional cement-based constructions and have a lower carbon footprint, reducing greenhouse gas emissions by five times. The startup has recently launched a new plastic recycling facility and has begun large-scale plastic sourcing in collaboration with the city of Addis Ababa and social enterprises in the waste management sector.
Investors and Funding
The funding round was led by African Renaissance Partners, a leading venture capital firm in East Africa, Endgame Capital, an investor in climate change mitigation technologies, and King Philanthropies, an investor in climate and extreme poverty initiatives.
Growth Ambitions
The funding will enable Kubik to meet growing demand, expand its operations with improved technology, empower more women waste collectors, and drive its pan-African growth ambitions. The startup's business model, which transforms difficult-to-recycle plastic waste into affordable building materials, is well-positioned to capitalize on the global affordable housing market, valued at $2.2 trillion, with a deficit of over 300 million units considered affordable for the poorest populations.
Growth Strategy
As part of its pan-African growth strategy, Kubik plans to utilize the funds to increase production, develop its team and market presence in Ethiopia, strengthen its waste tracking and environmental impact monitoring technology, and expand its reach to empower more women waste collectors.
