3cat, a Singapore-incorporated and Malaysia-born retailer of pre-owned electronics, has raised US$4 million in Series A funding to expand into the Philippines. The round was led by Foxmont Capital Partners, with participation from the Asian Development Bank and Golden Gate Ventures. The investment will support the company's effort to make warrantied second-hand devices a mainstream alternative as rising smartphone prices strain household budgets across Southeast Asia.
Building a Mainstream Pre-Owned Category
Founded in 2023, 3cat began as an online business focused on pre-owned Apple products in Kuala Lumpur before growing into more than 20 retail stores across Malaysia. Its model combines physical outlets, online customer acquisition, financing, warranty coverage and an internal technology platform. The company says most store transactions involve an online touchpoint, including engagement with proprietary AI sales agents.
Affordability Pressures Sharpen Demand
Smartphone makers are facing higher component costs, supply chain volatility and a shift toward premium devices, while wages in several Southeast Asian markets have not kept pace. 3cat notes that a new mobile phone in the Philippines can now cost up to double a Filipino's median monthly income. The company positions its devices, which can be up to 60 per cent cheaper than new equivalents, as a practical way to close that gap.
Why the Philippines Is the First International Market
With more than 110 million people, a young population and one of the region's most active mobile-first consumer markets, the Philippines offers a substantially larger opportunity than Malaysia. Euromonitor data cited by the company shows 18.4 million smartphones were sold in the country in 2025, almost twice Malaysia's volume. High social media usage and smartphone-led internet access further strengthen demand for relatively aspirational devices at lower prices.
Investor Support and Circular Economy Goals
Foxmont Capital Partners led the round and brings local consumer and retail knowledge in the Philippines, while ADB's participation adds a major development institution to the shareholder base. Beyond the Series A investment, ADB has authorized an additional US$2.8 million for future funding rounds. Investors see the company's warranty-backed model as a way to improve standards and extend the useful life of electronics, contributing to circular economy and e-waste management goals.
Trust as a Business Asset and Leadership Experience
Chief Executive Officer Karl Loo said trust is the element that makes the category scalable, built through device quality, warranties, stores and customer experience. He is joined by co-founders Chris Ng, a former founding senior executive at Oppo Malaysia, and Heinrich Wendel, who has experience across product, technology and digital businesses. This combination of regional retail and technology expertise underpins 3cat's omnichannel expansion plans.
Competition and the Road Ahead
3cat will not have the used-electronics space to itself, as players such as CompAsia, Reebelo and Carousell also serve Southeast Asian consumers seeking affordable devices. Informal shops and social media marketplaces remain strong competitors, particularly on price in the Philippines. The company's omnichannel mix of physical stores, warranty coverage, financing and digital support is intended to convert buyers who are cautious about purely online second-hand purchases.
With the Series A funding in place, 3cat now faces the task of proving that its Malaysian playbook can succeed in a larger and more fragmented market. The company will need to build supply, refurbishment standards, financing partnerships and brand trust in the Philippines while managing the costs of physical retail. If successful, it could help reshape how Southeast Asian consumers access quality technology without always paying for the latest new handset.