KFit Holdings Pte Ltd, a company connecting consumers with fitness and wellness businesses across Asia Pacific- similar to ClassPass in the U.S.- signed a deal to acquire Groupon Indonesia at an undisclosed fee.
The acquisition will see KFit enter the Indonesian market with Groupon Indonesia as a wholly-owned subsidiary of KFit, while Groupon Inc will become a strategic shareholder of KFit.
Through its connections, KFit currently created new business opportunities for gyms, studios, spas and other wellness locations. The company launched in April 2015 with a backing of venture capitalists and angel investors. To date it has raided more than $15 million U.S. dollars.
KFit is expanding under an experienced management team led by high-profile Malaysian entrepreneur Joel Neoh.
Groupon Indonesia is an established leader in local commerce with more than 1 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,” said Joel Neoh, Founder and CEO, KFit.
“Indonesia, the world’s fourth most populous nation, is expected to become the next breakout market for e-commerce after China and India. It’s current GDP per capita is similar to China’s in 2009, according to Alibaba.
“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,” added Neoh.
The transaction is expected to be completed in Q3 2016. KFit has confirmed that there will be no immediate changes to the business.
