| KUALA LUMPUR
KUALA LUMPUR Dec 29 Southeast Asian startup
KFit Holdings Pte Ltd expects to double its online-to-offline
commerce business in 2017 following the recent acquisitions of
Groupon's Malaysian and Indonesian operations, its
Backed by U.S. venture capital firm Sequoia Capital and
Malaysian telecommunications group Axiata Group, among
others, KFit started as a fitness app last year but has
increasingly embraced online-to-offline (O2O) commerce as its
It has ramped up lifestyle offerings such as food &
beverage, spa and massage deals through its acquisitions of the
Groupon operations in the latter half of 2016 for undisclosed
The rising popularity of O2O services, which are also
booming in other parts of Asia, such as China, reflects the
desires of a growing middle class in Southeast Asia, "whose
aspirations are to dine out and relax with friends", KFit's
founder Joel Neoh said in an interview.
KFit has raised $15.25 million in venture funds, of which
about half has been utilised for expansion, Neoh said, adding
that the group currently generates sales of more than 100
million ringgit ($22.31 million) per year.
Malaysia and Indonesia, which together contribute more than
90 percent of KFit's business, are where growth strategies will
be predominantly focused on, said Neoh, who was formerly the
head of Groupon Asia-Pacific.
The former Groupon businesses are being integrated into a
separate mobile app, Fave, which was launched in July. KFit also
aims to incorporate digital payment features on the Fave
platform, enabling customers to buy deals, make bookings and
transact their payment on the mobile app.
When asked about any plans for a listing, Neoh only said
KFit was focused on building the Fave platform.
Kuala Lumpur-based KFit also operates in Hong Kong,
Singapore and Manila. Fave is available in Kuala Lumpur, Jakarta
($1 = 4.4830 ringgit)
(Reporting by Liz Lee; Editing by A. Ananthalakshmi and