Fast food retailer Yum China Holdings has entered talks to acquire Daojia, a China-based online food ordering platform backed by e-commerce firm JD.com, for up to $200m, Reuters reported today.
Founded in 2010, Daojia operates an online food ordering and delivery platform that encompasses a network of more than 6,000 restaurants across 10 Chinese cities.
Yum China split from its parent company, the US-based Yum Brands, earlier this month and acts as its Chinese franchisee for brands including KFC, Pizza Hut and Taco Bell. The deal was backed by $460m of funding from financial services provider Ant Financial and Primavera Capital.
The talks are still at an early stage, two people familiar with the matter told Reuters, one saying: “It is a very aggressive play they are making. They will have access to delivery data across China, it is very powerful to understand what people are buying, what people are consuming”.
Daojia has raised about $75m, according to press reports. JD and investment bank Macquarie Capital provided $50m in series D funding in 2014, a year after JD and Morningside Group invested an undisclosed amount in a series C round. Asset management firm CDH Investments is also a backer.