VC-backed KFit to acquire Groupon Indonesia

The deal will allow KFit to enter the Indonesian market; Groupon Indonesia will become a wholly-owned subsidiary of KFit, while Groupon's global parent will take a strategic stake in KFit. Financial details of the acquisition, which is scheduled to close in the third quarter of 2016, have not been disclosed.

Launched last year, KFit provides users with access to fitness facilities and classes in their area through local partners. The company recently added massages and beauty salons in an effort to diversify its revenue streams, and also changed its membership to allow 10 activities per month instead of the previous unlimited usage. KFit has raised several rounds of funding, including a $3.25 million round led by Sequoia last July and a $12 million round led by Venturra in February.

"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," said Joel Neoh, founder and CEO of KFit, in a statement.

KFit said it has no immediate plans for changes to Groupon Indonesia's business. Groupon has sold off its stakes in several of its regional subsidiaries in recent years; most notably it sold a controlling stake in South Korea's Ticket Monster last year to KKR and Anchor Equity Partners, just 15 months after acquiring the business.

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• Topics
• Southeast Asia
• Venture
• Consumer
• Indonesia
• M&A
• TMT
• Malaysia
• Sequoia Capital
• Venturra Partners