Rising smartphone prices are pushing consumers towards more affordable alternatives, with Malaysian pre-owned electronics platform 3cat raising US$4 million in Series A funding to expand its model into the Philippines.
The funding round was led by Foxmont Capital Partners, with participation from the Asian Development Bank (ADB) and Golden Gate Ventures. The investment will support 3cat’s entry into the Philippines, its first international market.
The Philippines recorded 18.4 million smartphone sales in 2025, nearly twice Malaysia’s market, while the cost of a new mobile phone can reach up to twice the median monthly income of a Filipino.
3cat, which was founded in 2023, has built its business around making second-hand devices more accessible by combining lower prices with quality checks, a 12-month warranty and returns. It has grown from an online-only operation into a network of more than 20 stores in Malaysia.
CEO and co-founder Karl Loo said building consumer confidence was key to making pre-owned devices a mainstream option.
“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,” said Karl Loo, CEO and Co-Founder of 3cat. “That allows us to deliver on a very simple consumer promise: like-new technology at always-low prices.”
The company said most of its store transactions involve an online touchpoint, including its proprietary AI sales agents, alongside physical retail and financing options.
ADB’s investment also comes with an additional US$2.8 million authorised for future funding rounds. The development institution said the model could help extend the useful life of electronic devices while improving standards in the second-hand market and contributing to e-waste management.
“3cat is helping build greater confidence in the second-hand device market by bringing clearer standards around quality, reliability and after-sales assurance,” said Charles Navarro, Investment Specialist, ADB Ventures. “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.”
The expansion comes as rising component costs put further pressure on smartphone prices, potentially making refurbished and pre-owned devices a more important route to technology access for consumers in the region.
