Kaya Founders Elevates Tech Startup Support with $18 Million Funding Boost

Philippines-based venture capital firm Kaya Founders recently concluded the second close of its two latest funds to support tech startups in Southeast Asia. This latest development brings the total capital of the new funds to 1 billion pesos (approximately $18 million), elevating the firm’s total assets under management to 1.25 billion pesos (about $22.5 million).

The funding round saw participation from Pavilion Capital, Concentric Equity Partners, and Gabriel and Geraldine Sunshine from Boston-based Bracebridge Capital, along with family offices, high net-worth individuals, and entrepreneurs. These funds, named ‘Zero to One’ and ‘One to Ten,’ are a firm’s strategic focus on nurturing early-stage startups in the Philippines and broader Southeast Asian region to support 30 to 40 ventures over the coming four years with cheque sizes typically ranging from US$100,000 to US$500,000.

Established in 2021, Kaya Founders has a diverse portfolio comprising 44 companies across various sectors, from eCommerce and software to healthcare and financial services. Led by prominent figures such as Campos, Alimurung, and Gokongwei-Cheng, the firm focuses on helping tech-enabled startups in the Philippines and Southeast Asia.

Some noteworthy investments include Etaily’s $17.8 million Series A funding round, Locad’s $11 million Series A round, and initiatives like Advance, Plastic Credit Exchange, and RuralNet, addressing pressing challenges such as financial inclusion, climate change, and healthcare accessibility.

Through strategic partnerships and investments in innovative startups, Kaya Founders envisions a future where the Philippines emerges as a hub of technological innovation and entrepreneurial excellence, tackling critical issues that impact society and the environment.

Kaya Founders’ announcement of its second close supports its recent appointment as an official co-investment partner of the Startup Venture Fund (SVF), a PHP500 million fund dedicated to helping local startups managed by the National Development Company (NDC) under the Department of Trade and Industry (DTI). 

Despite the increasing interest and investment in the ecosystem in recent years, many startups still face challenges in accessing sufficient capital to scale, particularly as they strive to reach the pivotal Series A funding stage. By partnering with the SVF, Kaya Founders aims to address these funding gaps and empower startups to thrive in the dynamic landscape of Southeast Asia’s burgeoning tech scene.

The 2023 Philippine Startup Ecosystem Report shows Campos’ observation, revealing a decline in startup funding compared to the previous year. As of November 2023, startups secured 40% less capital than in the corresponding period of 2022, with only 40 deals recorded during that time. 

Campos emphasized the need to address the longstanding underinvestment in the Philippine market relative to its gross domestic product (GDP) and population. By leveraging their funds, Kaya Founders aims to stimulate investment in one of the most promising economies globally. 

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