somethingway/E+ via Getty Images Dada Nexus ( NASDAQ: DADA ) is a Chinese small cap capitalizing on the digitalization of retailers. It owns two segments: Dada Now, a cost-efficient crowdsourcing delivery platform, and JD Now's ecosystem, which allows retailers to better manage their warehouses and customers. They work together closely with the JD Group and are backed by Walmart.
Recently, a potential fraud case was brought to light by an audit, depressing the share price by another 50%, bringing the total down to 90% since its IPO. I believe the record negative sentiment makes it a strong buy. Company History Dada Nexus Limited was founded by launching Dada Now in July 2014.
In 2016, they established a cooperative relationship with JD.com (NASDAQ: JD ) and with Walmart Group (NYSE: WMT ). These invested US$380 million and US$370 million respectively.
In 2016, in addition to Dada now, it acquired on-demand retail marketplace JDDJ from JD.com. In 2020, Dada's founder & CEO, Philip Kuai mysteriously resigned like many other tech founders in China and Dada Nexus is now exclusively led by all JD.
com logistics veterans. In June 2020, they listed their ADSs on the NASDAQ under the symbol DADA. Since then, Dada has received US$546 million in cash for JD's partnership resources and customer traffic aid for issuing a total of 125 million ordinary shares ( Form 20-F, 2023 ).
According to the 2023 annual report ( Form 20-F, page 125 ), its principal shareholders are JD.com and Walmart E.
