Kaya Founders hits second close of latest funds at 1 billion pesos

PHILIPPINES-BASED venture capital firm Kaya Founders secured a total of one billion pesos (S$24 million) as of the second close of its two latest funds, bringing its total assets under management to roughly US$22.5 million.

Pavilion Capital and Concentric Equity Partners as well as Gabriel and Geraldine Sunshine of Boston-based hedge fund Bracebridge Capital participated in the round.

Kaya will invest in 30 to 40 early-stage startups in the Philippines and South-east Asia over the next four years via the new funds, which are called Zero to One and One to Ten.

The firm was also appointed as a co-investment partner for the Startup Venture Fund (SVF), a US$8.9 million investment vehicle aimed at supporting startups in the Philippines.

SVF is overseen by the National Development Company, the investment arm of the Department of Trade and Industry in the Philippines.

“If you look at the amount of venture funding that has gone into the ecosystem – relative to our gross domestic product and population – it’s clear that the Philippines has long been underinvested and underlooked as a market,” said Paulo Campos, one of Kaya’s founding members.

The 2023 Philippine Startup Ecosystem Report seems to support his observation.

As at November 2023, startups secured 40 per cent less than the funds raised during a similar period in 2022. These were spread across just 40 deals at the time, the report found.

Founded in 2021, Kaya invests in pre-seed to Series A companies, typically between US$100,000 and US$500,000.

The firm has a portfolio of 44 startups spread across sectors such as e-commerce, logistics and fintech.

Some of its recent investments include the US$17.8 million Series A of e-commerce enabler Etaily and the US$11 million Series A of logistics startup Locad.