April 14 (Reuters) - Chinese online direct sales company JD.com 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, JD.com 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, JD.com said in a statement.
JD.com 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)