JD Daojia to merge with Dada Nexus

April 14 (Reuters) - Chinese online direct sales company Inc said its online-to-offline unit, JD Daojia, will merge with Dada Nexus Ltd, a crowdsourcing platform, to form a new company.

Under the merger agreement, will receive about 47.4 percent of the new company’s equity for $200 million in cash.

JD Daojia provides consumers two-hour delivery of products from local supermarkets and other partners through its location-based app.

Philip Kuai, CEO of Dada, and Zhijun Wang, President of JD Daojia, will serve as CEO and President of the new company, respectively, said in a statement. said the new company will continue to operate its crowdsourcing delivery platform under the Dada brand. (Reporting by Bhanu Pratap in Bengaluru; Editing by Sunil Nair)