Ghada Ismail
As the construction industry faces growing pressure to reduce its environmental footprint, innovative material technologies are creating new opportunities to address both industrial emissions and the mounting plastic waste problem. Egyptian startup TileGreen is working at the intersection of these challenges, developing manufacturing solutions that turn difficult-to-recycle plastic waste into sustainable building materials.
In this interview with Sharikat Mubasher, conducted on the sidelines of the Green Shift Summit 2026 in Cairo, Khaled Raafat, CTO and Co-founder of TileGreen, explains how the company uses machine learning to improve manufacturing consistency, what differentiates its products from conventional building materials, and why Saudi Arabia represents an important market for its technology licensing model. He also shares his perspective on the fundraising challenges facing green startups and the growing role of AI in making sustainability commercially viable.
Could you tell us a little about yourself and the problem your company is trying to solve?
I am Khaled Raafat, CTO and co-founder of TileGreen, a material technology company specializing in developing manufacturing technologies that transform difficult-to-recycle plastic waste into sustainable building materials.
We are addressing two major challenges. The first is plastic waste, as only around 10% of plastic waste globally is recycled, while the remainder is typically landfilled, incinerated, or openly dumped.
The second is the construction industry's significant carbon footprint. As one of the most carbon-intensive industries, it faces major decarbonization commitments for 2030 and 2050. However, the solutions currently available are not sufficient to meet these targets.
What differentiates TileGreen's approach from existing solutions, and what gives the company a competitive edge?
Green solutions are often perceived as involving trade-offs, whether in terms of pricing, technical specifications, or other parameters.
At TileGreen, our technology platform enables us to develop more than 100 applications for indoor and outdoor non-structural building materials using plastic waste, without cement or chemicals. We achieve this through a thermomechanical, machine learning-based technology.
The resulting materials offer higher technical specifications than conventional concrete applications. Beyond their environmental benefits, they are also cost-competitive, generating savings in upfront costs, installation, and throughout their lifecycle.
What has been the biggest challenge in turning your idea into a scalable business, and how have you addressed it?
One of our biggest challenges has been penetrating the construction market, which is both large and traditionally slow to adopt innovation.
The dynamics of established industries can make introducing new solutions particularly challenging. Convincing customers to test and eventually adopt an unfamiliar product requires considerable effort and time.
I believe this stage represents a critical turning point for any startup, marking the transition from the idea stage to pilot projects and early commercialization. Successfully navigating this transition is essential to building a scalable business.
How are you leveraging artificial intelligence and other emerging technologies to improve your manufacturing processes and product quality?
Technology is at the core of our manufacturing process. Our system is based on machine learning because one of the biggest challenges facing recycling and other green solutions is maintaining consistent product quality despite variations in raw materials.
To address this, we developed what we call the Material Intelligence Model, a material science-based machine learning model capable of characterizing feedstock in real time.
We consider it the brain of our technology platform. Rather than relying on fixed operating parameters and manual adjustments, the model determines how the production line should operate based on the characteristics of the incoming materials.
This allows us to operate more efficiently and maintain product quality despite variations in feedstock. With this model, we have achieved more than 95% production consistency, significantly reducing the risks of inconsistent output and machine downtime.
What are your main growth priorities, and are you exploring new partnerships or expansion opportunities in the GCC, particularly Saudi Arabia?
We have evolved from being solely a green building materials provider into a technology provider. We realized that scaling these solutions requires reliable manufacturing technologies that can consistently deliver high-quality products. Since we could not find off-the-shelf technologies that met our requirements, we decided to develop our own.
Our primary business model is now based on turnkey technology licensing for existing building materials manufacturers across different markets. Instead of simply supplying the finished building materials, we provide manufacturers with the technology, factory setup, know-how, and standard operating procedures needed to produce them.
This approach allows us to expand into different markets through a scalable licensing model.
We have recently been working to strengthen our presence in the GCC, particularly Saudi Arabia. We have secured two licensing memorandums of understanding worth a combined $7 million and are close to finalizing our first licensing agreement in the Kingdom.
Our corporate structure includes a company incorporated in Delaware, alongside companies in Egypt and Saudi Arabia, with plans to establish a presence in China. Egypt remains our main operational base, while Saudi Arabia represents an important market for commercializing our technology through licensing, with potential for further strategic expansion.
What are the biggest challenges green startups face when raising capital compared with startups in more established sectors?
Green startups, particularly those working in hardware and deep technology, are not necessarily a suitable fit for every investor. One of the biggest challenges is finding enough angel investors and venture capital firms that understand the development journey of hard-tech startups and have the right expectations.
Founders also need to educate investors about their business models and demonstrate why these ventures require a different investment approach. Naturally, the conversion rate when approaching investors may be lower than that of fintech or e-commerce startups.
The growth journey is also different. The exponential growth curves often associated with traditional startups do not necessarily apply to hard-tech companies. Their development tends to be more gradual and incremental, requiring patience and sustained investment.
Finding investors who believe in the technology is particularly important during the early stages, when a company may not yet be considered bankable. Accessing grants can also be challenging because of the processes and paperwork involved.
It is certainly a demanding journey, but finding the right investors who understand and support the business can make all the difference.
How can artificial intelligence help green startups turn sustainability goals into commercially viable solutions that attract investors?
One of the major challenges facing sustainability-focused startups is measuring and reporting their environmental impact. Impact that cannot be properly demonstrated risks being perceived as greenwashing.
AI tools can make it easier to measure, consolidate, and report impact-related data, helping companies provide more credible evidence of their sustainability performance.
In our case, AI is not simply a complementary tool that supports business growth or daily operations. It is an integral part of our manufacturing technology.
I would emphasize that any founder developing a hard-tech startup or manufacturing technology should explore the potential of AI. It enables capabilities and solutions that were previously difficult, if not impossible, to achieve.
