Kubik, an upcycling startup focused on plastic waste reuse and sustainability, recently closed a seed funding round, raising a total of $3.34 million. The investment was made by a diverse group of investors including Plug and Play, Bestseller Foundation, GIIG Africa Fund, Satgana, Unruly Capital, Savannah Fund, African Renaissance Partners, Kazana Fund, Princeton Alumni Angels, and Andav Capital.
The primary intention behind the investment in Kubik is to support the company’s mission of addressing the pressing issue of plastic waste in Africa. The amount invested will be utilized to scale up the production of affordable building materials from hard-to-recycle plastic waste in Ethiopia. By doing so, Kubik aims to remove approximately 45,000 kg of plastic waste from landfills every day.
Why the Investors Invested
The investors were attracted to Kubik for several compelling reasons. The alarming projection that global plastic waste production is set to triple to over 1,000 million tons by 2060 created a sense of urgency to invest in innovative solutions like Kubik. The investors recognized the potential impact of the startup’s approach to upcycling plastic waste, which aligns with the need for a circular economy and the reduction of plastic pollution.
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Kubik’s business model combines social impact, circular economy principles, and low-carbon construction. This unique blend appealed to the investors who were looking for opportunities to invest in companies that address Africa’s most pressing challenges, including environmental sustainability and affordable housing.
Additionally, Kubik’s products offer significant advantages over traditional construction materials. The interlocking building materials developed by Kubik, such as bricks, columns, beams, and jambs, allow for the construction of walls without the need for cement, aggregates, and steel. This innovative approach not only reduces construction costs by at least 40% per square meter but also contributes to lower greenhouse gas emissions compared to cement-based products. The investors recognized the potential of Kubik’s cost-effective and environmentally friendly solutions to disrupt the construction industry.
A Look at Kubik
Kubik was founded in 2021 by Kidus Asfaw and Penda Marre. The startup operates in Kenya and Ethiopia, two countries in Africa that face significant challenges in managing plastic waste. Kubik’s primary markets are these regions, where it aims to lead the way in plastic waste reuse and sustainability efforts.
Kubik specializes in transforming hard-to-recycle plastic waste, including polyethylene, polypropylene, and polystyrene, into affordable building materials. The startup’s manufacturing plant in Ethiopia has the capacity to build over a quarter million square meters of wall surface area annually, which can result in the construction of up to 10,000 affordable homes per year.
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The recognition received by Kubik, including winning the Startup of the Year at the 2023 Global Startup Awards and being declared the leading climate tech startup in Africa at the VivaTech conference, highlights the company’s growing reputation and the significance of its mission.
By offering affordable and environmentally friendly building materials, Kubik aims to contribute to addressing the global deficit of affordable housing units, which currently exceeds 300 million. The startup’s vision extends beyond its current operations, with plans to scale production in Ethiopia and expand into other African countries in the future. Kubik sees itself as a driving force in accelerating the adoption of low-carbon, sustainable construction materials to combat plastic waste, improve housing affordability, and mitigate the impact of climate change on urban environments.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard