Fitness sharing platform KFit today announced that it has signed a deal to acquire Groupon Indonesia for an undisclosed amount and in doing so marks its entry into the Indonesian market.
Groupon Indonesia will be a wholly-owned subsidiary of KFit, while Groupon Inc. will become a strategic shareholder of KFit.
“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,” said KFit Founder and CEO Joel Neoh in an official 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,” he added.
The transaction is expected to be completed in Q3 2016. KFit has confirmed that there will be no immediate changes to the business.
This news is not the first time KFit has used M&A to get a stronghold in the Southeast Asian market. In March, the company announced a strategic partnership with Singapore-based fitness service startup Passport Asia.
KFit has raised over US$15 million in funding from investors such as Sequoia Capital India, 500 Startups, Venturra Capital, Susquehanna International Group and the Axiata Digital Innovation Fund.
When announcing the news of the Series A funding round, Neoh briefly mentioned that in the next phase of its expansion, KFit will bring “even more exciting partners onto the platform”.
The company started off as a fitness sharing platform in April 2015, but it has extended offerings into the beauty and wellness segment as well.
Groupon Indonesia itself claimed to have secured over one million subscribers and over 15,000 local merchants.
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12M Series A Investors:
Sequoia CapitalSequoia Capital500 Startups