- Funds to be used for regional expansion, technology investment
- Round led by Venturra Capital with participation by SIG, ADIF
FITNESS-sharing platform KFit has secured US$12 million in a Series A round led by Venturra Capital, with participation by new investors such as SIG (Susquehanna International Group) and Malaysia’s Axiata Digital Innovation Fund (ADIF).
Its earlier investors Sequoia Capital India and 500 Startups also participated in this round. This follows a US$3.25-million round led by Sequoia Capital in July 2015, as well as undisclosed pre-seed funding.
The additional funds will be mainly used for regional expansion and technology investment, according to founder Joel Neoh (pic above).
“The new funding will enable KFit to expand in the region and invest in technology, operations and marketing to further solidify its leading position in the Asia Pacific region,” he told Digital News Asia (DNA) via email.
In the last six months, KFit’s number of active customers has jumped 400%, according to Neoh, saying, “We have a five-digit number of active customers.”
KFit has also launched in cities like Seoul, Taipei, Manila, Auckland and Perth. “The number of gyms and studios has surged five times to over 4,500, with most of the notable gyms and fitness studios on board in each city,” he declared.
The new funding will go beyond just market expansion and technology improvement, according to Neoh, and will include “upcoming new categories, activities, and pricing models to be added this year.
“The next phase of our expansion will see us bring even more exciting partners onto the
platform, helping us transform our
customers’ health and lifestyle as they
discover and enjoy great offline
experiences across the Asia Pacific
region,” he added.
When asked why KFit pursued another round of funding so soon after its previous round, Neoh pointed to the need to solidify its position in the region.
Feedback and allegations
There has been some online chatter about the divide between KFit members and actual gym members, but Neoh dismissed such allegations.
“So far, no gym owners have received any complaints from their own paying members,” he said.
“Customer ratings of KFit activities are at record high of 4.5/5 based on 10,000 reviews and 1.5 million ratings,” he added.
Investors are similarly optimistic about KFit’s potential in the region.
“KFit created an enormous opportunity for gyms and studios to market their business to an engaged and active consumer base,” Venturra Capital managing partner Stefan Jung said in an official statement.
“It has truly redefined the fitness paradigm in Asia Pacific, by helping gyms and studios attract demand in a way that is affordable for members and sustainable for the businesses,” he added.
These sentiments were echoed by Pieter Kemps, vice president at Sequoia Capital.
“Joel [Neoh] and the KFit team have executed extremely well in the last year and quickly emerged as the leading fitness platform for consumers in Asia Pacific,” Kemps said in a statement.
“We continue to believe this segment has a big consumer pain point and traditional models of accessing fitness services and infrastructure can be improved upon using hyper-local discovery, demand-matching, and on-demand scheduling.
“We are excited about the impact KFit can have on the fitness and wellness industry,” he added.
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