Food Delivery Service Daojia Raises US$50M of Series D Financing Led by JD

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Online food delivery service announced that it has closed US$50 million of Series D financing jointly led by and Macquarie. (source via Sina) This deal marked JD’s second capital injection in Daojia, which has received undisclosed amount of financing in Series C round one year earlier.

The funding will be used in R&D, expansion into new cities and construction of delivery team, according to the company.

Founded in 2010, Daojia differentiate itself from other competitors with a special focus on urban medium- and high-tier users and it has constructed an in-house delivery team.

The company’s data shows that Daojia has nearly 1 million users now, operating in eight cities across the country, including Beijing, Shanghai, Hangzhou, etc., up from only two cities one year earlier. In the past one-year period, its restaurant partners nearly doubled to more than 3,000 from 1,800 in Sept. last year, while the number of deliverymen climbed from over 500 to 1,000.

Sun Hao, founder of Daojia, said they planned to continue the expansion, aiming to operate in 20 to 30 cities by the end of 2015.

Similar food ordering and delivery service and Etaoshi also received different amount of funding. Moreover, Chinese leading rating and review service Dianping and Alibaba also added food delivery services to tap this market.

image credit: Daojia