KFit says the deal is in line with its plan to become a leader in Southeast Asia’s online-to-offline space. The company also launched a lifestyle app called Fave a few months ago.
Fave helps people book places for food and activities at special discounts, ranging from 10 to 70 percent. It’s available in Kuala Lumpur, Jakarta, and Singapore, listing over 3,200 businesses across these cities.
“This acquisition will see Groupon Malaysia transition to Fave in early 2017 and expand Fave’s offerings to cover restaurants, beauty, wellness, gyms, studios, hotels, holidays, leisure, entertainment, and professional services,” KFit explains.
The purchase comes as no surprise. “With our Indonesian business achieving nearly 2x growth since our acquisition, we are confident that the same growth principles will bring an exciting new local commerce offering to Malaysia,” notes KFit co-founder and CEO Joel Neoh.
KFit gained popularity by offering unlimited gym and fitness classes for a fixed monthly fee. It tweaked its model later on, limiting membership to 10 classes per month. It also branched out to a pay-per-use model for other categories like massage and beauty salons.
Joel has his roots in Groupon Malaysia, where he served as CEO. He went on to head the ecommerce company’s Asia-Pacific operations.
US-headquartered Groupon started the daily deals craze and then transformed itself into a marketplace after the original model lost steam a few years later.