Kubik, an innovative sustainable technology firm based in Africa, has announced the successful completion of its $5.2 million seed funding round.
With the seed round, Kubik became the first business in Ethiopia to raise millions of dollars for solutions related to sustainability and the climate.
Leading East African venture capital firm African Renaissance Partners, net-zero oriented, Endgame Capital, an investor in climate change-related technology, and King Philanthropies, a climate and extreme poverty investor, are among the round’s investors.
Kubik is an environmental technology company that recycles plastic trash into affordable, long-lasting, and low-carbon buildings.
By doing so, it cleans up the environment and encourages cleaner, greener growth throughout Africa. When compared to conventional cement-based development, Kubik’s products are at least 40% less expensive per square meter, and their low carbon content results in five times lower greenhouse gas emissions.
Kubik’s investment thesis has strong market drivers.
The global market for affordable housing is valued at $2.2 trillion, and approximately 300 million units are not deemed affordable for the poorest of the poor.
With materials accounting for more than 40% of the cost of new housing developments, Kubik’s business strategy of converting difficult-to-recycle plastic trash into reasonably priced building materials is well-positioned.
Additionally, Kubik has created a stir among companies that are taking the initiative to manage their plastic waste.
Opportunities from the hospitality and services sectors have come to Kubik through its “Net Zero Plastic” projects, reducing their trash into Kubik products.
Kubik is getting a lot of inquiries from new potential markets and believes that the fastest urbanizing nations in Africa have enormous potential.
Kidus Asfaw, Co-founder and CEO of Kubik, said:
“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, and 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 fundraise 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.”
The latest fundraising comes after Kubik has launched a new plastic upcycling factory in Ethiopia’s cutting-edge Adama Industrial Park, begun to source plastic at scale in collaboration with the City of Addis Abeba and various social enterprises in the waste management sector, and secured several high-profile clients, including Pharo Ventures and Cornerstone Development Group.
Kubik was also recognized as Africa’s top ClimateTech startup at VivaTech, the yearly technology conference, and as the winner of the 2023 Global Startup Awards’ “Global Startup of the Year” title.
The funds will be utilized by Kubik to expand its workforce and market presence in Ethiopia, scale up manufacturing, improve its technology for tracking waste and environmental impact, and broaden its reach to empower female waste collectors as it pursues its pan-African expansion strategy.
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