China’s JD.com would invest $800 million in on-demand delivery firm Dada Group, according to Reuters. The e-commerce firm would own about 51% of Dada after the investment.
The investment by JD comes when the company is spinning off its logistics business that gave it a competitive advantage over rival Alibaba Group.
JD merged its online-to-offline unit, JD Daojia, with Dada in 2016.
Dada-JD Daojia, a Chinese online grocery and delivery firm, raised $500 million from Walmart Inc. and JD in 2018.
Under the deal, JD.com agreed not to sell, transfer, or dispose of any shares bought in the deal for six months after the closing.
JD.com and Dada stocks are currently gaining. DADA: NASDAQ is up 8.19%, 9618: HKG is up 0.49%
