VC-backed KFit buys Groupon Malaysia

Financial details for the transaction, which comes just months after the company acquired Groupon's Indonesia business, were not disclosed. Like Groupon Indonesia, Groupon Malaysia will be absorbed into KFit's online-to-offline (O2O) services marketplace Fave early next year, according to a statement.

KFit launched Fave this summer, aiming to help local retailers reach customers through the internet and mobile phones. More than 3,200 businesses in Kuala Lumpur, Jakarta and Singapore are listed on the platform. The addition of Groupon Malaysia will see Fave expand its offerings in Malaysia across a range of businesses, including restaurants, beauty services, gyms, hotels, entertainment and professional services.

"Millions of local businesses are booming in China thanks to the adoption of O2O services, with hundreds of millions of consumers embracing these platforms as part of their day to day lives," said KFit founder Joel Neoh, who previously served as CEO of Groupon Malaysia and later ran the company's Asia-Pacific operations. "The convenience and value benefits of these platforms are key drivers of this new norm. This future is inevitable for Southeast Asia and we hope to be at the forefront of this exciting shift."

KFit launched in 2015 with an undisclosed amount of seed funding, followed by a $3.25 million funding round led by Sequoia and a $12 million Series A round this February led by Venturra. In its early stages the company focused on connecting users with fitness facilities and classes in their area, similar to US-based ClassPass. It has focused on adding new business lines recently in order to diversify its revenue streams.

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• Topics
• Southeast Asia
• Consumer
• Technology
• Buyouts
• Malaysia
• TMT
• Trade sale