Daojia, a China-based food delivery service backed by e-commerce group JD.com, revealed on Monday it has entered a definitive agreement to be acquired by fast food retailer Yum China Holdings.
Terms of the transaction have not been disclosed, though Yum China had been in talks to acquire Daojia since November 2016 when reports suggested it could pay up to $200m for a majority stake.
Established in 2010, Daojia operates an online food ordering and delivery platform with a particular focus on higher-end restaurants in large cities across China such as Beijing, Shanghai and Shenhzen.
Yum China, a spinout of US-based fast food group Yum Brands, will use Daojia’s platform to boost delivery services for its KFC and Pizza Hut chains in China. Food delivery accounted for 12% of Yum China’s business in the first quarter of this year.
Hank Sun, Daojia’s founder, will continue to lead the company following the transaction, which is expected to close at the end of this month. Daojia has raised approximately $75m in funding, according to media reports.
JD.com and investment bank Macquarie Capital took part in the company’s $50m series D round in 2014 alongside Morningside Ventures and CDH Venture, after JD.com and Morningside had participated in a series C round of undisclosed size in 2013.
Sun said: “We are honoured to integrate our business with Yum China, which operates China’s two leading restaurant brands, KFC and Pizza Hut.
“With the combination of the Yum China business and our technological infrastructure, we look forward to achieving digital and delivery synergies for both of us.”