Malaysian pre-owned electronics platform 3cat has raised $4 million from a group of investors led by Foxmont Capital Partners to fund its expansion into the Philippines, its first overseas market, as rising smartphone prices drive demand for cheaper devices.
In a statement on Wednesday, Sept. 23, 3cat said the Series A funding round also drew investments from the Manila-based multilateral lender Asian Development Bank (ADB) and venture capital firm Golden Gate Ventures.
Manila Bulletin first reported last Sept. 15 that the ADB was investing in 3cat as the Malaysian startup ventured into the Philippine market.
3cat’s statement clarified that the ADB participated in the $4-million Series A round alongside Foxmont and Golden Gate. Besides its investment under the fundraising round, the ADB has also authorized a further $2.8 million for future funding rounds of 3cat.
The company said the fresh capital would support its entry into the Philippines, where it plans to replicate the business model it has established in Malaysia by selling quality-assured pre-owned electronics through both physical stores and digital channels.
Founded in 2023, 3cat has expanded from an online-only business into a network of more than 20 stores across Malaysia.
It sells pre-owned devices with a 12-month warranty and a return policy, while customers can inspect devices at physical stores, access financing, as well as transact through its online channels.
3cat chief executive officer (CEO) and co-founder Karl Loo said building consumer confidence in second-hand electronics has been central to the company’s expansion.
“Trust is what makes this category scalable. We have spent the last three years building it deliberately, through the quality of the devices we sell, the warranties we stand behind, the stores we invest in and the market-leading experience we deliver at every customer touchpoint,” Loo said.
“That allows us to deliver on a very simple consumer promise: like-new technology at always-low prices,” he added.
3cat is targeting the Philippines as rising handset prices make new smartphones increasingly expensive for consumers.
The company said 18.4 million smartphones were sold in the Philippines in 2025, nearly twice the size of Malaysia’s market.
According to 3cat, a new mobile phone can now cost up to twice the median monthly income of a Filipino, creating an opportunity for pre-owned devices sold at lower price points.
Foxmont managing partner Jelmer Ikink said the venture capital firm led the funding round because of 3cat’s potential to replicate its business model in the Philippines and other markets.
“Across Southeast Asia, smartphones are both essential and aspirational, but premium devices are increasingly out of reach for many consumers. 3cat makes refurbished electronics trustworthy, warrantied, and accessible,” Ikink said.
“We led the round because its complementary founding team has built a repeatable omnichannel model that can expand access to quality devices across the Philippines and beyond,” he added.
ADB Ventures investment specialist Charles Navarro said 3cat could help strengthen consumer confidence in the second-hand device market while extending the useful life of electronics. ADB Ventures is the ADB’s venture investment arm, supporting early-stage technology companies that contribute to sustainable development in Asia-Pacific.
“3cat is helping build greater confidence in the second-hand device market by bringing clearer standards around quality, reliability and after-sales assurance,” Navarro said.
“As the company expands in Malaysia and the Philippines, its model has the potential to help raise standards across the wider market while extending the useful life of devices. This will have a positive long-term impact on the local circular economy and contribute meaningfully to climate action and e-waste management,” he added.
3cat was founded by Loo together with Chris Ng, a former founding senior executive at Oppo Malaysia, as well as Heinrich Wendel, who has experience in product, technology, and digital businesses.
The company said its pre-owned electronics are priced at up to 60 percent below new devices as it seeks to expand its circular economy business across Southeast Asia.
