Malaysia-based fitness company KFit acquires Groupon Indonesia
KFit Holdings has signed a deal on Monday to acquire Groupon Indonesia for an undisclosed fee.
The acquisition will see the fitness company enter the Indonesian market with Groupon Indonesia as a wholly-owned subsidiary of KFit, while Groupon Inc will become a strategic shareholder of KFit.
There are over one million subscribers and at least 15,000 local merchants on Groupon Indonesia, making it among the most visited e-commerce websites in the country.
The transaction is expected to be completed in the third quarter this year. KFit has confirmed that there will be no immediate changes to the business.
KFit's founder and CEO Joel Neoh said that the combination of "Groupon Indonesia's established presence and KFit's experience in building a mobile-first platform" will propel them in a high-growth local commerce market.
"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 Mr Neoh.
According to DealStreetAsia, Mr Neoh was also the founder of Groupon Malaysia and had only launched KFit in Kuala Lumpur and Singapore in April last year.
KFit sells gym and fitness memberships in the same style as US-based ClassPass, which the Malaysian entrepreneur coined as the "next Uber" in fitness.