Published ｜ Tiger Sniff Business Group

Author ｜ 刘 然

Today (May 13) , Dada Group submitted the prospectus as scheduled, and knocked on the door of Nasnak–

Dada Group has officially submitted the F-1 prospectus documents to the US Securities and Exchange Commission (SEC) , and plans to use “DADA” as securities The code is listed on NASDAQ in the United States, and initially raised about 100 million US dollars. The funds raised from the initial public offering will be mainly used for investment in technology and research and development, implementation of marketing plans and expansion of the user base, as well as general corporate purposes.

Dadaru ’s successful bell ringing, two companies on the three instant delivery platforms (Meituan, Dada, Hummingbird) “shore”.

The epidemic that is about to pass has greatly increased the demand for immediate delivery. It can be said that Dada, which is preparing to go on the market for a long time, has caught up with an appropriate opportunity. However, the report card submitted by Dada still has loss data, and Dependence on JD’s business. Will Dada tell a good capital story?

Spring of instant delivery

The layout of Dada Group is very clear today, and its main businesses include Dada and JD Daojia. In April 2016, JD Daojia and the then crowdsourcing logistics platform “Dada” announced the merger, which has become the “instant retail platform” that is now both a crowdsourcing logistics platform and a supermarket fresh O2O platform. The prospectus quoted iResearch’s report saying, “Dada Express is the local instant delivery platform with the largest domestic orders in 2019, and JD Daojia is also the No. 1 local instant retail platform for domestic GMV in 2019.”

After the merger, the two sides once faced the local life service / instant delivery war with Meituan, Didi, Hungry, and Hummingbird under the brand of “Dada-Jingdong Dajia”. Today, JD Daojia has brought Dada a larger order entry, Dada brought JD Daojia the capacity that was in short supply at the peak of orders, and also eased the cost pressure of JD Daojia and JD Logistics on the distribution side.

JD.com is nowDada’s first shareholder. The prospectus disclosed Dada ’s pre-IPO shareholding: Dada Group founder and CEO Kua Jiaqi holds 8.3% of the shares; co-founder and CTO Yang Jun holds 1.7% of the shares; JD.com holds 47.4% of the shares Shares; Sequoia Capital China Fund, Wal-Mart and DST hold 10.5%, 9.9% and 8.7% shares respectively.

At the beginning of this article, “ru” is because there has been news of Dada seeking to go public this year since August last year. This step is taken now, and it is the time when it has just experienced the epidemic. node.

After the battle against the epidemic in 2020, Demand for distribution, online retail, and local life services has exploded. According to a survey by Consumer Reports, 90% of users used the live delivery platform during the epidemic, half of them used this platform for the first time, and more than 70% of users said that the epidemic ended Will continue to use it later. The iResearch report also said that China ’s local commodity distribution market is expected to have an average daily order volume of 161.5 million in 2023, with a compound annual growth rate of 18.1%.

This prospectus also shows that in the past year as of March 31 this year, JD Daojia ’s GMV increased by 92% year-on-year to 15.724 billion, the number of active users reached 27.6 million, and the order volume reached 134.7 million; In the first quarter, Jingdong Daojia’s net income increased by 154% year-on-year, and GMV surged by 172.3% to 5.562 billion yuan, which is equivalent to one-third of GMV last year. Active users also increased from 10.4 million in the same period last year to 16.5 million, and the unit price of passengers was An increase of 58.4%, during the same period, Dada Group ’s net income increased by 108.9% year-on-year to nearly 1.1 billion yuan.

The opportunity is coming, but it is still some distance away from profitability. The prospectus also shows that the net income from 2017 to 2019 was 1.2 billion, 1.9 billion, and 3.1 billion yuan; the net losses were 1.4 billion, 1.9 billion, and 1.7 billion yuan, respectively. In the first quarter of this year, the annual net income increased due to the epidemic, but the net loss was still 279.3 million yuan.

The biggest reason for Dada ’s loss is the same as that of the former US group: the rider ’s expenditure is still high.

The situation seems familiar: In 2019, the rider resources purchased from suppliers are also the largest cost of Meituan ’s takeaway business, reaching 41 billion yuan, accounting for 82.8% of commission income.

The prospectus shows that in the past year as of March 31 this year, more than 634,000 active riders on Dada completed 822 million orders, which are currently available in more than 700 cities and counties in China.