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 alternate 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 is going to launch the IPO, however a dual-listing in Thailand and the U.S. is just not 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 whole 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.

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

Wongnai began off as a restaurant evaluation platform in 2010. In 2020, it merged with Line Man, which provides 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 hottest 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 accordance with the CEO, is its capability to leverage Line’s large consumer base, as most of the app’s customers select to make funds by way of the linked Line funds app.

Right now, the corporate provides every part from meals and grocery supply and restaurant evaluations, 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 goals, 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 need to develop them multiple-fold,” Chinsupakul stated. The corporate will proceed to spend money on rising its tech group, notably on the info and AI aspect, he added.

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

At the moment, GrabFood leads the meals supply market in Thailand with a considerable 56% market share, carefully adopted by Line Man Wongnai at 53%. Shopee is available in at No. 3, adopted by Siam Business Financial institution (SCB)’s Robinhood as of April 2023, in accordance 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 progress. In February 2024, the penetration price of on-line meals supply in Thailand stood at 27.14%, whereas that of grocery supply was at 17.34%.

As for ride-hailing companies, Chinsupakul stated individuals in Thailand nonetheless use on-demand taxi companies through apps, however the online-only market might be larger. Experience-hailing apps’ consumer penetration out there is predicted to achieve 19.8% this yr, per Statista.

When requested if the corporate goals to grow to be an excellent app like Seize and GoTo, Chinsupakul stated Line Man Wongnai is aiming greater. “An excellent app is for the buyer 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 needs to deal with the Thailand market at this level and isn’t contemplating increasing into different Southeast Asian nations earlier than going public.