Novena Global Lifecare adds AI to its arsenal with US$350mn Xingkeduo merger
Singaporean healthcare platform Novena Global Lifecare has closed a US$350mn merger with Chinese express haircut provider Xingkeduo.
Through the merger, Novena, with 100+ clinics in 20 cities across APAC and beyond, adds Xingkeduo’s 100 physical stores, its Chinese ecommerce platform, and its proprietary AI platform to its offering.
Subsequent plans for the merged entity include the launch of a hybrid-store format blending medtech-based cosmetic and hairdressing services driven by AI technology.
As a result of the merger, China is the most significant contributing market to Novena’s group-wide revenues.
"Through this merger, Novena Global Lifecare will immediately reinforce our leading presence in the aesthetics beauty and wellness industry in Asia Pacific,” said Nelson Executive Chairman at Novena, in the merger’s press release.
“More significantly, it would further improve our retail and service quality, and disrupt the current industry model and cost structure. We strongly believe that in the future, whether in Singapore, China, or even in Asia and Latin America, we can use this model to empower customers to have more customised products and services."
Willy Chuang, Founder of Xingkeduo, added: "China has the most developed and active e-commerce retail system in the world. With our proprietary AI-based Beauty OS system, Xingkeduo has been able to evolve and scale up from a hair salon offering express haircuts to one offering its own brand of professional scalp care and hair styling products to target customers' needs, not only in stores but also on e-commerce platforms. With Novena Global Lifecare's participation, we are confident that we can grow our combined business exponentially in China and beyond."
Chuang continued: "We analysed the prospects of the service industries and the healthcare sector, and we believe that the future unicorns will be multi-brand matrices, and the customer experience will not be limited to the store, but consist of a seamless online-to-offline experience, covering a full range of on-demand products and services, including customised aesthetic and medical solutions."