Dada raises US$368m from US trading debut
On-demand retail and delivery platform Dada has raised US$368 million after it expanded its offering with 20 million American Depository shares at US$16 as the Shanghai-headquartered company aims to boost its presence in the retail delivery scene.
Shares started trading on Friday night through a remote ceremony with NASDAQ.
Demand for delivery saw exponential growth during quarantine periods this year and could grow further as more people shift to online shopping.
Backed by JD and Walmart, it operates JD-Daojia and Dada Now, two on-demand retail platforms in more than 700 Chinese cities.
"The growing on-demand delivery and local retailers' continuous digitalization process will provide us with historical development opportunities and we will continue to provide value for retailers by connecting vendors with shoppers," said Philip Kuai, founder, chairman and CEO.
The company hopes to use the proceeds for technology and research and development, and implementing marketing initiatives to grow its user base.
It currently connects with about 100,000 supermarkets and offline merchants and is partnering with major supermarket chains including Walmart, Yonghui, CR Vanguard and other offline merchants.
In the 12 months to the end of March, Dada's more than 634,000 delivery staff had fulfilled 822 million orders.
Local research consultancy iiMedia expects the user base for on-demand delivery services to climb to 482 million this year and demand has expanded not only to food but daily necessities such as health care and personal care products.