Thai meals supply app Line Man Wongnai weighs IPO in Thailand, US in 2025

Line Man Wongnai, an on-demand meals supply service in Thailand, is contemplating an preliminary public providing on a Thai change or the U.S. in 2025, the corporate’s CEO and co-founder, Yod Chinsupakul, stated in an unique interview with TechCrunch.

Line Man Wongnai has but to finalize the place it’s going to launch the IPO, however a dual-listing in Thailand and the U.S. shouldn’t be off the playing cards, Chinsupakul stated.

The corporate is backed by Singapore’s sovereign wealth fund, GIC; Z Holdings, a three way partnership fashioned by SoftBank and South Korean web agency, Naver; and BRV Asia, amongst others. It has raised greater than $372 million in complete and has a valuation of greater than $1 billion.

“We’re targeted on continued enterprise execution and restructuring as key priorities forward of the potential IPO, and we are going to proceed to evaluate our capital construction and financing wants, together with varied fundraising choices,” Chinsupakul stated.

Picture Credit: Line Man Wongnai

The corporate’s differentiators, in keeping with Chinsupakul, are its strategic partnerships with Line, and its understanding of buyer habits, native retailers, supply personnel and the regulatory atmosphere.

Wongnai began off as a restaurant assessment platform in 2010. In 2020, it merged with Line Man, which affords meals and grocery supply, on-demand ride-hailing, and a messenger app. Then in 2023, the corporate acquired Rabbit Line Pay (RLP), a web-based and offline cost platform, and FoodStory, a Thai level of sale (POS) startup. The corporate says the acquisitions strengthened its revenues and broadened its buyer base.

The merger with Line Man was a major milestone for Wongnai, as Line is Thailand’s most popular messaging app — utilized by greater than 90% of Thais, the app has over 50 million customers within the nation, Chinsupakul stated. What units the startup other than its opponents, in keeping with the CEO, is its capability to leverage Line’s huge consumer base, as most of the app’s customers select to make funds via the linked Line funds app.

In the present day, the corporate affords the whole lot from meals and grocery supply and restaurant opinions, to a funds platform, POS for retailers, and ride-hailing — taking over opponents like Seize within the nation.

“Our historical past has confirmed that we’re nimble and have the power to execute strategic M&A. We at all times assess potential funding alternatives in pursuit of our strategic aims, which can embrace potential funding and/or M&A if it helps our longer-term objectives. We’re very open,” Chinsupakul stated.

The CEO stated the corporate is intent on rising its POS enterprise for retailers and the funds service.

“These two different companies are comparatively smaller than our meals supply enterprise [as we are a latecomer], so we wish to develop them multiple-fold,” Chinsupakul stated. The corporate will proceed to spend money on rising its tech group, significantly on the info and AI aspect, he added.

Line Man Wongnai faces robust competitors within the meals supply area in Thailand from Singapore’s Seize and Indonesia’s GoTo, which have their very own tremendous apps and supply e-commerce companies, too.

At the moment, GrabFood leads the meals supply market in Thailand with a considerable 56% market share, intently adopted by Line Man Wongnai at 53%. Shopee is available in at No. 3, adopted by Siam Industrial Financial institution (SCB)’s Robinhood as of April 2023, in keeping with a report by Statista.

Room to develop in Thailand

Chinsupakul identified that the penetration of on-line meals and grocery supply is low in Thailand and there’s ample room for development. In February 2024, the penetration charge of on-line meals supply in Thailand stood at 27.14%, whereas that of grocery delivery was at 17.34%.

As for ride-hailing companies, Chinsupakul stated folks in Thailand nonetheless use on-demand taxi companies by way of apps, however the online-only market could possibly be larger. Trip-hailing apps’ consumer penetration out there is predicted to succeed in 19.8% this yr, per Statista.

When requested if the corporate goals to turn out to be an excellent app like Seize and GoTo, Chinsupakul stated Line Man Wongnai is aiming greater. “A brilliant app is for the patron aspect solely, however Line Man Wongnai’s companies are for each customers and retailers. We’re extra of a mixture of Meituan and WeChat Pay.”

The corporate desires to concentrate on the Thailand market at this level and isn’t contemplating increasing into different Southeast Asian international locations earlier than going public.

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