Malaysian digital media firm iMedia acquires online beauty store

Malaysia-based digital media group iMedia said it will acquire Lovelife Technologies, which owns and operates the online beauty store Favful.

The financial details of the deal were not revealed.

Photo credit: iMedia

According to iMedia, the takeover marks its entry into the social commerce space. The two firms also signed a sales representation agreement that will see iMedia take charge of revenue growth from Favful’s influencer advertising unit and branded content. As part of the deal, all social media assets from the online beauty store operator will be fully merged into iMedia’s ecosystem.

Founded in 2016, Favful says it has more than 3,000 beauty and lifestyle influencers on board, who reach millions of users online. The social commerce platform aims to offer personalized products based on recommendations from its community members.

“By integrating this reach with Ittify (iMedia’s existing influencer agency), our combined social media audience reach is well over 172 million,” Favful CEO and founder Sasha Tan said in a statement.

According to data from VentureCap Insights, Favful has been profitable since 2018. The company reported revenue of over US$372,000 in its financial year 2019, while its earnings before interest and tax stood at around US$1,102. Its financials for 2020 are yet to be disclosed.

Voon Tze Khay, iMedia’s CEO and co-founder, said one of the company’s key focus areas will be to accelerate Favful and iMedia’s social and live commerce initiatives and “expand beyond the beauty lifestyle segment.”

In the last 12 months, iMedia has been on an acquisition spree. Including the latest deal, the Malaysian digital media group has acquired six firms: OhMedia, Ittify, Goody25, BeautifulNara, Moretify, and Favful. The acquisitions have given iMedia’s websites a reach of more than 15 million users in Malaysia every month, according to the company.

It is worth noting that iMedia is in the process of completing its initial public offering on the Malaysia stock exchange, a process it kicked off after it was acquired by digital media group Rev Asia Berhad in September last year.

In the deal, Rev Asia Berhad entered a share sale agreement to acquire iMedia for approximately 40 million ringgit (US$ 9.6 million).

If iMedia receives approval from regulators and shareholders for the current deal, the company will try to complete the acquisition of Favful prior to its listing on the Malaysian exchange.

Currency converted from Malaysian Ringgit to US Dollar. Rate: US$1 = RM4.15