On Monday, nine-month-old KFit announced it had closed a $12 million series A funding that would enable it scale new verticals.
The round was led by Southeast Asian VC Venturra Capital, with participation from new investors SIG and Axiata Digital Innovation Fund. Also in on the round were Sequoia Capital India and 500 Startups, two investors from its $3.25 million seed round in July 2015.
The service, which provides health club and healthcare services in the style of $400 million-valued ClassPass in the U.S began out much like ClassPass, as a method shoppers might discover gyms and health middle packages without signing up for a long-commitment contract, whereas serving to gyms faucet on a brand new viewers of potential customers. However, according to CEO Joel Neoh – who formerly led Groupon’s efforts across Asia- this model, has shifted considerably this previous yr.
Neoh stated the approaching is now constructing out an “lively way of life platform” which can increase past gyms and health to incorporate associated classes similar to spas, magnificence providers and massages. These expansions will focus round providers, nevertheless, not promoting bodily items, so you would image KFit as an online-to-offline service for health and wellness providers fairly than a spot to purchase sports activities gear.
“We ask ourselves: ‘How can we assist individuals exercising discover issues round them?’ — and that comes right down to discovery,” Neoh stated.
As of now, the service is current in 10 cities in Asia, together with nations in Southeast Asia, Australia, Taiwan and Korea, throughout which it claims to have taken 250,000 exercise reservations from some four,500 gyms and health facilities.
That lots of geographical enlargement work to have coated inside a yr, and Neoh stated that 2016 will largely be about locking down its enterprise mannequin and (probably) hitting profitability by the top of the yr. Reaching profitability earlier than the yr is up can be notable, provided that KFit was carding a reasonably excessive month-to-month burn fee — unfavorable $320,000 in Q3 2015, 80 % of which went to staffing, in line with paperwork seen by TechCrunch.
On that notice, whereas issues might quiet down this yr, the KFit CEO does anticipate two or three new metropolis expansions to occur over the approaching months. That would embrace Indonesia, the place Venturra Capital is predicated, however neither China nor India are on the radar. Furthermore, the primary focus seems to be on vertical enlargement quite than location. That’s notably fascinating as a result of it might deliver KFit into competitors with a variety of devoted magnificence reserving platforms — together with Vanitee, which raised $three.5 million, and Rocket Web-backed Vaniday — which have risen up throughout Southeast Asia in current months.