Southeast Asia’s online-to-offline (O2O) e-commerce market Fave on Wednesday announced its acquisition of Groupon Singapore, the city-state’s deals and discounts platform.
Financial terms of the deal are undisclosed.
According to data compiled by Crunchbase, Fave (Kfit) has raised up to $15.25 million in equity funding and counts firms like 500 Startups, Axiata, Segnel Ventures and Sequoia Capital among its financial backers.
The acquisition of the Groupon Singapore’s business follows similar acquisitions of Groupon Indonesia and Malaysia in 2016. Thus far, Groupon Malaysia has been fully integrated into Fave, while Groupon Indonesia is set to follow suit in the coming months. Groupon Singapore will see a similar integration into Fave by mid-2017. The transaction is expected to close later this week.
The Fave team, who also founded the region’s leading fitness sharing platform KFit, is aiming to innovate and drive O2O across multiple lifestyle categories in Southeast Asia.
Speaking on the acquisition, Ng Aik-Phong, Managing Director of Fave Singapore, said, “With one of the highest smartphone penetration in the world at 85% and a highly competitive market for offline businesses, Fave’s ability to connect digitally savvy consumers to offline businesses will play a key role in the company’s success in the region.”
Adopting a mobile-first approach coupled with a cashless transactional experience to consumers, it permits consumers to discover and access a wide variety of experiences from offline businesses such as restaurants, spas, hotels and theme parks; businesses who have partnered with Fave in Singapore includes Naughty Nuri’s, Pastamania, Shangri-La, Holiday Inn and others.
“Fave helps our business partners succeed in mobile commerce by providing proprietary business tools and access to a highly-engaged consumer audience where they can offer flexible promotions, loyalty programs and more, with the goal of helping our partners gain new customers and retain existing customers,” said Joel Neoh, Founder of Fave.
Neoh adds, “We are very excited about the opportunity to combine Groupon Singapore’s success with our technology, to further enhance convenience for consumers while creating more growth opportunities for local businesses. We’ve seen tremendous growth in the adoption of O2O platforms by local businesses across Southeast Asia over the past year, and the benefits our platform offers today is just the beginning of more to come.