Malaysian platform 3cat has secured pre-series A funding to expand its retail network and digital services in Southeast Asia.

The funding round included contributions from The Radical Fund, AEON, and existing investors such as Iterative, TA Ventures, and TheVentures.

Founded in 2023, 3cat operates in the secondhand electronics market.

The company has opened over 20 physical stores within its first year of operation.

The newly raised capital will help increase the store count to nearly 100 across Malaysia. It will also establish a refurbishment center in Kuala Lumpur.

🔗 Source: 3cat

🧠 Food for thought

1️⃣ Southeast Asia’s e-waste crisis presents both environmental necessity and business opportunity

3cat’s focus on secondhand electronics addresses a critical regional challenge, as Southeast Asia faces a severe e-waste crisis with e-waste being the world’s fastest-growing waste stream.

Between 2010 and 2015, East and Southeast Asia saw a 63% increase in e-waste generation, reaching 12.3 million tonnes, yet only 15% of Asia’s e-waste is collected and recycled compared to 35% in Europe1.

After China banned e-waste imports, countries like Malaysia and Thailand experienced a surge in foreign e-waste, with Malaysia seeing a 132% increase in e-waste imports from the U.S. alone1.

This context makes 3cat’s expansion plans particularly significant beyond business growth, as they directly support Malaysia’s national MADANI sustainability framework while addressing a pressing environmental need.

The company’s vertically integrated approach could potentially help formalize a largely informal sector where unsafe recycling practices have created severe health and environmental hazards.

2️⃣ Trust deficit represents the critical challenge in Asia’s secondhand electronics market

3cat’s emphasis on consumer trust (“building Malaysia’s most trusted omnichannel platform”) addresses the central challenge in the secondhand electronics sector across Asia.

Survey data shows that while most consumers are comfortable buying pre-owned cars, less than 5% consider purchasing secondhand smartphones, highlighting a significant trust gap in electronics2.