KFit buys out Groupon Indonesia to expand into SE Asia’s largest market

Malaysia-based fitness sharing startup KFit's website.

KFit Holdings Pte Ltd has signed a deal to acquire Groupon Indonesia at an undisclosed amount, in a deal that makes Groupon Inc a strategic shareholder in KFit.

The acquisition will see KFit enter the Indonesian market with Groupon Indonesia as a wholly-owned subsidiary of KFit.

The transaction is expected to be completed in the third quarter of 2016 and KFit has confirmed that there woud be no immediate changes to the business.

Groupon Indonesia is an established leader in local commerce with over one million subscribers and over 15,000 local merchants. It is among the most visited e-commerce websites in the country.

“Indonesia represents an untapped opportunity for us and serves as a natural expansion of our regional footprint in Southeast Asia. The combination of Groupon Indonesia’s established presence and KFit’s experience in building a mobile-first platform will propel us in a high-growth local commerce market, further accelerated by increasing mobile penetration,” KFit founder and chief executive officer Joel Neoh said in a statement.

“While KFit will continue to focus on health and fitness services, this presents a strategic direction for us to enhance and broaden our offerings. In the long run, this acquisition will provide us with a strong platform for growth in Southeast Asia,” Neoh added.

KFit’s strategic imperative is to offer more services to cater to a broader base of consumers on a hyper-local level, the statement added.

Since its debut as a fitness sharing platform in April 2015, KFit has extended its offerings to include beauty and wellness categories, and launched its pay-per-use offering, KFit Go.

In the past six months, KFit users have reserved over 400,000 activities. Today, one reservation is made every minute on the KFit platform.

“Our goal is to transform the way people experience much more than just fitness, which is why this acquisition is significant. We are going to build on Groupon Indonesia’s strong foundation and grow it further based on our experience and expertise,” Neoh said.

“We believe that the KFit team is well-positioned to take the Indonesian business to even greater heights, as Joel has been a formidable leader for Groupon in Asia Pacific in the past. We look forward to seeing the company grow and are excited to become a strategic shareholder of KFit,” Groupon president of APAC, Michel Piestun said.

Indonesia, the world’s fourth most populous nation is expected to become the next breakout market for e-commerce after China and India, with a current gross domestic product per capita similar to China’s in 2009, according to Alibaba.

Also read:

Temasek-backed InnoVen Capital funnels $5m of venture loans to KFit, Pomelo Fashion

Malaysia: Fitness platform KFit seals $12m Series A from Venturra Capital, SIG, Sequoia

KFit raises $3.25m in second seed round, led by Sequoia Capital

Malaysia’s fitness platform KFit merges with Australian competitors Classhopper, SweatPass

KFit’s need for speed: Charting growth with three-month checkpoints

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.