SOURCE: KFit

KFit

June 06, 2016 00:47 ET

KFit to Acquire Groupon Indonesia

Move Will See KFit Enter SEA's Largest Consumer Market and Expand Into Multi-Category Local Commerce

JAKARTA, INDONESIA--(Marketwired - Jun 6, 2016) - KFit Holdings Pte Ltd (KFit) has today 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.

Groupon Indonesia is an established leader in local commerce with over 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 of 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. 

How KFit is evolving

KFit's strategic imperative is to offer more services to cater to a broader base of consumers on a hyper-local level. 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," said Neoh. 

"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," said Michel Piestun, president of APAC at Groupon.

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About KFit
KFit seamlessly connects consumers with fitness, beauty and wellness businesses in key cities across Asia Pacific. It gives people more ways to keep fit and feel good about themselves, while creating new business opportunities for gyms, studios, salons, spas and other offline businesses. KFit launched in April 2015 with the strong backing of venture capitalists and angel investors. To date, it has raised over US$15 million in funding from the likes of Sequoia Capital India, 500 Startups, Venturra Capital, Susquehanna International Group and the Axiata Digital Innovation Fund. KFit is expanding under an experienced management team led by high-profile Malaysian entrepreneur Joel Neoh.

About Groupon
Groupon (NASDAQ: GRPN) is building the daily habit in local commerce, offering a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat and buy. By enabling real-time commerce across local businesses, travel destinations, consumer products and live events, shoppers can find the best a city has to offer.

Groupon is redefining how small businesses attract and retain customers by providing them with customizable and scalable marketing tools and services to profitably grow their businesses.

To download Groupon's top-rated mobile apps, visit www.groupon.com/mobile. To search for great deals or subscribe to Groupon emails, visit www.groupon.com. To learn more about the company's merchant solutions and how to work with Groupon, visit www.groupon.com/merchant.

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