PHILIPPINE-BASED venture capital firm Kaya Founders is looking to invest in 10 to 15 startups this year, citing growth opportunities in digitalization and financial inclusion.

“We invested in a total of nine companies [last] year, including follow-on investments into existing portfolio companies,” Raya Buensuceso, managing director at Kaya Founders, said in an e-mailed reply to questions.

Startups that Kaya Founders supported last year include WyzAuto, Esse Vida, Mobee, Kindred, Netbank, EDGE Tutor, GoEden, Peddlr and Swiftclaims, she told BusinessWorld.

“As an early-stage, sector-agnostic fund, we are open to pre-seed to series A startups from all industries, for as long as they are actively serving or poised to launch in the Philippine market in the near future,” Ms. Buensuceso said.

Kaya Founders is looking to further deploy its second set of funding.

“We are currently deploying our second set of funds, which have a collective target assets under management of $25 million (P1.46 billion),” Ms. Buensuceso said. “We plan to deploy the remainder of these funds over the next two to four years.”

The firm’s investment strategies are guided by the emergence of artificial intelligence (AI)-driven platforms, technology-enabled solutions and integrated financial services.

Ms. Buensuceso said the digitalization of businesses makes the Philippine startup market exciting. “There is an ongoing generational shift in business leadership, with younger and digitally native leaders more willing to adopt new software solutions,” she said.

“AI, which we believe is the defining technological shift of our time, is already driving concrete benefits for businesses,” she adding, noting how AI helps cut costs and improve employee productivity, operational efficiency and product development.

Kaya Founders is also bullish due to the growing consumer class and the growth of digital lending platforms.

“Many of the startups that have raised significant funding rounds in the past year like BillEase, Salmon, Asialink, First Circle, etc. are operating in the lending space, yet the unmet need remains vast,” Ms. Buensuceso said.

Suburban and rural Filipinos are behind their urban counterparts in terms of credit knowledge and perception, according to the 2024 Credit Perception Index by TransUnion.

To bolster the growth of Philippine startups, Ms. Buensuceso cited the need for legislation that would improve the ease and attractiveness of doing business in the country.

The government should also focus on attracting local and global talent to start and join Philippine startups, Ms. Buensuceso said.

It should help facilitate capital flows in Philippine startups, both from within the country and across the globe.

Lawmakers should likewise have clearly defined key performance indicators to track state agencies’ progress and accountability measures in supporting the growth of startups, she added. — Beatriz Marie D. Cruz