3cat raises US$4M Series A to take used-device retail model from Malaysia to the Philippines

3cat, a Singapore-based retailer of pre-owned electronics, has secured US$4 million in Series A funding to expand its used-device retail model from Malaysia to the Philippines. The round was led by Foxmont Capital Partners, with support from the Asian Development Bank (ADB) and Golden Gate Ventures. The company plans to enter the Philippine market, where it sees a larger and more price-sensitive opportunity.

The Philippines has over 110 million people, a young population, and one of the region's most active mobile-first consumer markets. Smartphone sales in the country reached 18.4 million units in 2025, almost double Malaysia's market size. Smartphone prices in the Philippines can now cost up to double the median monthly income of a Filipino, making 3cat's offer of cheaper, warranty-backed devices more appealing.

The used-device market in Southeast Asia is not new, but it often involves informal channels with risks such as unclear device history, battery issues, counterfeit parts, and limited recourse. 3cat aims to move the category from informal trade to mainstream retail by addressing these concerns through device checks, a 12-month warranty, return policies, mall-based stores, and online sales touchpoints.

Most transactions involve an online interaction in the buying journey, with customers using AI sales agents for assistance. 3cat claims its devices can be up to 60% cheaper than new equivalents, which is significant in a market where demand for smartphones continues to grow, but consumers remain value-conscious. The company's expansion to the Philippines is bolstered by the participation of Foxmont Capital Partners, a local venture capital firm with experience in consumer and commerce businesses.

The ADB sees the investment as crucial in building confidence in the second-hand device market by establishing clear standards for quality, reliability, and after-sales assurance.