Ethiopian eco-startup Kubik has successfully closed its seed funding round, raising an impressive $5.2 million. Leading the investment effort are African Renaissance Partners, alongside prominent backers such as Endgame Capital, Ethiopian Pharo Ventures, and King Philanthropies.
Founded in 2021 by Kidus Asfaw and Penda Marre, Kubik operates from its recently established factory at the Adama Industrial Park in Addis Ababa. The startup specializes in repurposing plastic waste into eco-friendly building materials, including low-carbon bricks, columns, and beams.
This substantial investment is aimed at accelerating Kubik’s operations within Ethiopia and paving the way for expansion into other African markets by 2025. CEO Kidus Asfaw expressed gratitude for the support, emphasizing the shared vision of building a sustainable and affordable future.
Kubik’s innovative solution addresses the dual challenge of affordable housing and environmental sustainability. Their building materials offer a cost-saving advantage, being 40% more economical per square meter compared to conventional alternatives like cement, while also significantly reducing carbon emissions.
The timing of this investment aligns with positive projections for the global affordable housing market, valued at over $2.2 trillion. With a growing emphasis on sustainability, Kubik’s eco-friendly materials are well-positioned to meet the rising demand for alternative construction solutions.
Having been recognized as the ‘Global Startup of the Year’ at the 2023 VivaTech conference, Kubik is poised for further growth. Scaling up waste collection efforts and leveraging technology to track plastic waste will be crucial steps in the startup’s expansion strategy.
In summary, Kubik’s successful seed funding round underscores investor confidence in its mission to provide sustainable, affordable housing solutions. With this support, Kubik is well-equipped to contribute positively to both the construction industry and environmental conservation efforts in Africa and beyond.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
30th April, 2024
