Dada Group Submitted Its IPO Prospectus To The US, Jingdong Is The Largest Shareholder.

On May 13th, the dada group formally submitted the F-1 prospectus to the US Securities and Exchange Commission (SEC) in the early hours of May 13th Beijing time. It plans to issue the listing code on the NASDAQ with "DADA" as the trading code, or will become the "first retail of instant retail".

Prospectus shows that dada group's revenue has been growing rapidly for nearly three years. In particular, accelerated growth in the second half of 2019 was achieved, with a year-on-year growth rate of 90% and a further increase to 109% in the first quarter of 2020.

While the revenue growth accelerated, the overall operating rate of the company showed a sharp downward trend. The dada group's loss rate continued to narrow in the past three years. The adjusted net loss rate was substantially optimized by nearly half to 45.8% in 2019, and in the first quarter of 2020, it continued to substantially optimize to 17.6%.

Prospectus shows that a large part of the net income of dada group is from a few customers, including Jingdong group, WAL-MART group and Yonghui. The former two are strategic investors and shareholders of dada group.

As a local instant retail and distribution platform, dada group has two core business platforms: dada express and Jingdong. Prospectus quoted IARI consulting report that dada express is the largest local order distribution platform in 2019, and Jingdong is also home to GMV's first local real-time retail platform in 2019.

As of the first quarter of 2020, dada delivery has covered more than 2400 counties and cities, and Jingdong has covered more than 700 counties and cities. Up to 12 months in March 31, 2020, the number of active stores on Jingdong's platform reached 89 thousand. At this time, listing financing should aim at seeking a new stage of development, such as accelerating subsidence, expanding cooperation formats, and enhancing technological innovation and empowerment.

According to public information, dada group was founded in 2014, has won the Sequoia, DST, Jingdong, WAL-MART and other top tier funds and strategic partners investment, the total amount of financing about $1 billion 300 million. In December 2, 2019, the new dada, which was merged by dada and Jingdong, was officially renamed dada group and plans to complete the updating of scenes under the online and offline phases.