From Startup to Scale up: The Challenges of Growth Beyond Series A

The Philippine startup ecosystem has matured significantly in recent years, with increased access to pre-seed and Series A capital, a growing talent base, and more founders building category-defining companies. But once product-market fit is achieved and initial traction is validated, startups go through a new challenge - scaling. While expanding into new markets, product lines, or operational complexity demands significant capital, it also requires the right systems, leadership, and ecosystem support to convert early momentum into scalable, sustainable growth.

The Hurdles After Series A

Navigating the journey from Series A to Series B and beyond presents unique hurdles. Startups must demonstrate more than just traction — they need to show predictable and positive unit economics, evidence of scalability with a clear path for acceleration, and experienced leadership capable of guiding the next phase of growth. These are critical to signal whether local demand is sufficient or if regional expansion is needed, how much of the business is still dependent on founders, and what economies of scale can be expected in the next level of scale.

In the Philippines, the challenge isn’t a lack of potential — it’s limited support structures that help startups successfully transition through this critical growth phase. Our 2025 Philippine Venture Capital Report shows that in 2024, growth-stage investments captured a greater share of activity, with steady deal flow across all quarters. Early-stage deals remained strong, pointing to a healthy pipeline of emerging startups, while later-stage investments gained momentum as investor confidence deepened.

From 2022 to 2024, Foxmont data shows that deal activity in the Philippines has seen allocations of approximately 10% for deals in the $10-20M round range — the range for Series B companies in the Philippines over the same period. Given the maturation of the Philippine startup ecosystem and the number of companies who have successfully raised Series A rounds in recent quarters, there is a meaningful opportunity for investors to play a greater role in supporting growth-stage startups and helping drive the next wave of scaling success in the Philippines.

Scaling through Human Capital

At Foxmont, we’ve seen firsthand how non-financial support is just as important as financial support — particularly in strengthening leadership frameworks and developing internal systems for sustainable growth. 

A good path to Series B readiness is through the strength of a startup’s middle management. Investors look closely at leadership teams capable of executing at scale. Middle managers bridge strategy and execution, driving performance and accountability, and reducing key person risk in a corporation. In the Philippines, a new generation of local founders—shaped by experience from the country’s first wave of startups—is playing a key role in strengthening leadership pools and mentoring emerging talent. They’re also joined by “sea turtle” founders, Filipinos returning with global experience, further enriching the ecosystem. Startups that invest early in leadership development are better positioned for sustainable, long-term growth.

Some startups that have cracked the code on scale through human capital:

• Pickup Coffee didn’t scale by reinventing the wheel — it scaled by doubling down on what worked. Co-founder Diego Lorenzo built early momentum through sharp product instincts and relentless execution. When Francis Flores joined in 2024, he complimented Diego’s vision with operational structure, helping transform traction into scalable growth. Diego shared at Foxmont’s AGM in March 2025:

“Francis helped us move from being a scrappy startup to a sustainable business. He made sure we had the systems in place to scale without losing our edge.”

Their approach focused on empowering team leads and building a culture of ownership early, so the business could grow fast without breaking. Today, Pickup operates 370 branches, reflecting the effectiveness of their approach to sustainable growth.

• Colourette’s strong community and product resonance were laid down early by Nina Dizon. When Stephanie Tanjuatco was brought on board by Foxmont in late 2023, she brought the structure and systems needed to elevate that momentum. With Nina continuing to lead the departments she knew best and Stephanie focused on product operations, their dynamic proved catalytic. Reflecting on this at Foxmont’s AGM in March 2025, Stephanie shared:

“Nina took charge of the departments she knew inside out, and I focused on what I do best — creating systems for product growth. Our strengths complemented each other perfectly, and that synergy helped us scale without rushing,” Stephanie shared at Foxmont’s AGM in March 2025.

Together, they scaled through smart iteration, staying close to customers and grounded in what worked.

Scaling to New Markets

As startups approach Series B, capturing more of the existing serviceable obtainable market (SOM) becomes critical to unlocking future growth. For Philippine startups, we’ve seen this achieved in several ways

Expanding to Regional Markets: With the home market as a solid foundation, moving into new geographies allows teams to test product-market fit, adapt to different customer behaviors, and explore new operational opportunities. Filipino teams, with their English fluency, cultural adaptability, and technical skills, are particularly well-equipped to operate across diverse markets. This not only accelerates growth but also opens access to dynamic, high-potential regions. Some standouts include:

• Locad’s scale-up strategy focused on expanding beyond the Philippines by following real demand in Southeast Asia, Australia, the Middle East, and the US. Rather than forcing entry into new markets, they built fulfillment centers closer to customers — improving logistics and supporting over 300 brands. Their global growth wasn’t about chasing size, but about building the right infrastructure to meet real needs, enabling sustainable, customer-driven expansion powered by a strong tech platform.

• Advance is addressing a widespread liquidity gap among workers in emerging markets, expanding its salary-on-demand and financial wellness services from the Philippines to Vietnam, where informal lending alternatives also often dominate. 

• Pickup Coffee, a fast-growing grab-and-go coffee brand, is scaling rapidly from the Philippines into international markets, with reports of over 30 stores already operating in Mexico City, showcasing how its accessible specialty coffee model can resonate beyond its home base.

Tapping Deeper Into their Existing SOM: Capturing more market share of a startup's existing SOM allows them to refine their offerings, improve customer acquisition strategies, and enhance retention to gain a larger portion of the market they already serve. 

• Wildflour Hospitality Group is a prime example of this approach. By expanding into high-traffic areas and diversifying its brand portfolio—from artisanal pizza to elevated Filipino cuisine—the company has strengthened its presence. As a result, the company has developed a pipeline that has its brand’s core values in every new location. With up to 14 new locations set to open in 2025 and backed by a $15M investment from KV Asia Capital, Wildflour is scaling its operations and tapping into new growth while staying deeply connected to its core market.

• Sprout is actively raising a Series C round, with part of the funds allocated for future acquisitions. Its recent purchase of JustPayroll Philippine highlights a deliberate strategy to capture greater market share within its existing SOM. Rather than expanding into new verticals, Sprout is consolidating players within the local HR tech space—deepening its foothold in a market it already knows well. This inorganic growth approach reflects a disciplined effort to dominate a clearly defined and serviceable market segment.

Expanding Product or Service Offering to Adjacent SOMs: Startups can also grow by expanding their offerings—whether through new products or additional services—which can attract new customers or deepen engagement with their existing user base.

• Colourette has used social media as a way to test new products and build customer loyalty at the same time. By co-creating with its community and using data to continuously refine its offerings, Colourette has consistently delivered viral product drops that captivate its loyal customer base. Their highest live selling record to date is at $120,000 in just four hours. Similarly, their sister brand Fresh Formula is seeing growth in the body care category with the same cult following as Colourette has achieved in cosmetics.

• Kumu also exemplifies the power of expanding offerings to drive growth. Originally centered around live streaming, Kumu strategically broadened its services by introducing features like social games, virtual gifting, and e-commerce integrations. This thoughtful diversification has attracted a broader user base, while simultaneously strengthening engagement within its community.

Path Forward

Scaling remains one of the most challenging and defining phases of the startup journey. More Philippine founders are navigating it with clarity, resilience, and the support of a maturing ecosystem.

What’s becoming clear is that scale isn’t just a function of capital or ambition — it's a test of structure, leadership, and execution. The good news? Scaling doesn’t always require reinvention. Often, it’s about refining, systematizing, and replicating what already works. The local ecosystem is already catching up. With better access to e capital, an increasingly sophisticated investor community, a deepening talent pool shaped by returning global talent, and of course growing demand for products and services from consumers and businesses, the conditions for scale are growing quickly.