Paktor acquired by Singapore advisory firm Kollective Ventures

Singapore-based advisory firm Kollective Ventures said it has completed its acquisition of local dating and networking app operator Paktor Group from Taiwan’s M17 Entertainment.

The deal marks Kollective’s first foray into full buyouts, extending beyond minority equity investments, according to a statement. Financial details of the deal were undisclosed.

Photo credit: Sim Yanting

“Paktor is a rock-solid asset with many high potential products under its wing. The dating industry in Asia has been growing rapidly in recent years,” said Kollective managing partner Kheng Lian Ho. The company is also set to announce a number of growth initiatives soon, the exec added.

According to the statement, the combined listed value of global dating companies now exceeds US$25 billion. Apps have also been evolving to add video and voice elements to their offerings.

“Global dating leaders have shown the immense size of these businesses but in Asia, the growth is only just starting,” said Paktor CEO Shn Juay.

After the sale, M17 plans to shift its focus on accelerating the growth of its core livestreaming business in Japan and new markets. It also looks to bolster its position in Chinese-speaking markets such as Taiwan and Hong Kong, the company said in a separate statement.

Paktor Group was formed in 2013 by M17’s current CEO Joseph Phua. It owns a number of dating assets, including its namesake app that has operations in Taiwan, Korea, and Southeast Asia. It also runs GoodNight, an app that enables voice conversations between strangers.

Paktor was merged with livestreaming company 17 Media in April 2017 to form M17 and broaden the scope of its business, focusing on social entertainment.

Tech in Asia earlier reported that M17 had held advanced talks to sell Paktor to other dating app companies last year. However, no deals materialized amid disagreements in valuation, a source familiar with the matter said.

See: Paktor cuts jobs as two key markets slump; sees bright spot in voice dating app

It was also reported that Paktor has conducted multiple layoffs since two years ago. According to former staff familiar with the numbers, the company’s headcount had fallen from about 250 to 190 between 2018 and 2019.

However, Juay said that the startup now has around 200 employees after making annual job cuts part of its regular operational reviews. The chief exec admitted that it has been “more aggressive this year in terms of the resizing,” with plans to cut 5% of its workforce by the end of Q1.

Update (May 22, 12 pm): This article was updated to include details from M17’s statement on the deal.