Dada-JD Daojia, a Chinese online grocery and delivery firm, said it has raised US$500 million from Walmart Inc. and JD.com Inc. in its latest round of financing, Reuters reports.
The company, partly owned by JD.com, comprises two businesses. Dada operates a network of 5 million delivery men, while JD Daojia partners with retail stores and provides one-hour delivery services of groceries and other items.
Walmart said it invested about US$320 million in the latest fundraising. The Arkansas-based company said its partnership with Dada-JD Daojia dates back to 2016 when it invested US$50 million, adding that at present, 200 Walmart stores in 30 major Chinese cities have a presence in JD Daojia.
“We are confident that this deeper collaboration with Dada-JD Daojia will enhance our omni-channel footprint and deliver a better O2O (online to offline) customer experience,” said Wern-Yuen Tan, Walmart China’s president and chief executive.
The global retail giant has been pushing to integrate its retail network in China with the country’s burgeoning “smart retail” movement, as retailers and tech giants such as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. cut deals to combine shoppers’ online and offline experience.
Earlier this year, Walmart said it opened its first small-sized high-tech supermarket in the southern city of Shenzhen, which will stock products that customers will also be able to buy on the US retailer’s store on JD Daojia. The stores are competing with Alibaba’s Hema to provide fast delivery of grocery to customers.
– Contact us at [email protected]