Kitar, a Southeast Asia-focused recommerce platform, has raised over $10 million in a pre-Series A funding round led by Source Code Capital, according to its announcement.
The round also saw participation from Hike Capital and returning investor Mindworks Capital.
The company said it will use the proceeds to build out its artificial intelligence capabilities, strengthen quality inspection and supply chain infrastructure, and expand its offline collection network, with Indonesia as its primary focus market.
Founded by former Shopee executive Frank Zhou, Kitar is targeting the region’s fragmented secondhand goods market, starting with smartphones. Zhou, who previously co-founded Chinese used car marketplace Guazi.com, said his experience in Southeast Asia pointed to strong demand for secondhand devices but limited standardisation.
“More than half of Vietnam’s delivery riders were using iPhones,” Zhou said, referring largely to secondhand devices, which he cited as an early signal of unmet demand.
Kitar operates a hybrid model combining direct sales and a consumer-to-consumer marketplace. The company is initially focused on controlling quality through a standardised grading system for used phones, which it says helps reduce uncertainty for buyers.
It is also deploying generative AI tools to support inspection processes and produce product verification content, as part of efforts to improve operational efficiency.
On the supply side, Kitar sources inventory both online and through offline touchpoints. It currently operates 12 stores and workstations in Indonesia and plans to expand to 20 mall stores and 40 workstations by 2026.
The company has also partnered with Shopee and works with local distributors for Apple products, as it builds out its supply network.
Kitar estimates Southeast Asia’s recommerce market could account for 8–10% of the region’s projected $400 billion e-commerce market by 2030.
Zhou described the segment as “winner-takes-most”, adding that a leading platform could capture a significant share of the market as it scales.
The company plans to expand into additional categories, including motorcycles and luxury goods, once it has established operational capabilities in its initial segments. It is targeting $100 million in gross merchandise value and millions of daily active users by 2026.
