Fashion
Groupon Indonesia will become a wholly-owned subsidiary of KFit and Groupon Inc will be a strategic shareholder of KFit. The terms of the deal have not been disclosed.
A report in the Chicago Tribune said Groupon announced the sale on Monday, the latest step in its ongoing shedding of international markets.
Chicago-based Groupon, which operates in 26 countries, has exited several international markets since 2015 in favour of building up its North American business.
KFit founder and Chief Executive Officer Joel Neoh is the founder of Groupon Malaysia. He later headed Groupon’s Asia-Pacific business.
KFit gained popularity by offering unlimited access to gyms and fitness studios for a fixed monthly fee in Asia. It offers users the chance to book fitness classes at different locations through one app.
The deal should close in the third quarter of 2016, KFit said in a press release, adding that Groupon Indonesia has more than one million subscribers and more than 15,000 local merchants. Groupon Indonesia will continue to function as usual, the release said.
A report in Techinasia said, in February, KFit added more categories such as massages and beauty salons to its offering, an indication that the startup needed to add more revenue streams to its core product.
A month later, KFit also tweaked its model, limiting membership to 10 activities per month, for the same rate.
Neoh said: “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.”
