Groupon and KFit’s relations, a long way to go!

Groupon finds a buyer for its Indonesia business. KFit is a Malaysia-based one year old startup that sells gym and fitness memberships will soon acquire Groupon Indonesia. The startup is present in 10 cities in Asia Pacific including countries in Southeast Asia, Australia, Taiwan and Korea. Till date, KFit has raised over $20 million from investors like Sequoia Capital via its India and Southeast Asia fund and debt-financing from Innoven Capital.

Groupon Indonesia will soon become a fully-owned subsidiary of KFit with Groupon Inc becoming a strategic shareholder of the startup. It claims to have more than one million subscribers and around 15K merchants. The company finds lucrative to sell off its business at an attractive cost. With this deal, KFit will step in the Indonesian market, one of the most popular and sizeable markets across the world.

However, there are strong links between the two companies. KFit CEO Joel Neoh started group-buying site GroupsMore in Malaysia that Groupon had acquired within months of launch. Post-acquisition, Neoh led Groupon’s operations in Asia before leaving to start KFit in 2015.

Takeaways:

• KFit is a Malaysia-based one year old startup that sells gym and fitness memberships will soon acquire Groupon Indonesia.
• Groupon Indonesia will soon become a fully-owned subsidiary of KFit with Groupon Inc becoming a strategic shareholder of the startup.
• With this deal, KFit will step in the Indonesian market, one of the most popular and sizeable markets across the world.

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