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 would launch the IPO, however a dual-listing in Thailand and the U.S. isn’t off the playing cards, Chinsupakul stated.

The firm is backed by Singapore’s sovereign wealth fund, GIC; Z Holdings, a three way partnership shaped by SmoothBank 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 are centered on continued enterprise execution and restructuring as key priorities forward of the potential IPO, and we’ll proceed to evaluate our capital construction and financing wants, together with varied fundraising choices,” Chinsupakul stated.

Image Credits: Line Man Wongnai

The firm’s differentiators, based on Chinsupakul, are its strategic partnerships with Line, and its understanding of buyer habits, native retailers, supply personnel and the regulatory surroundings.

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 firm 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 aside from its opponents, based on the CEO, is its means 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.

Today, the corporate provides all the things from meals and grocery supply and restaurant critiques, to a funds platform, POS for retailers, and ride-hailing — taking up opponents like Grab 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 embody potential funding and/or M&A if it helps our longer-term targets. We are very open,” Chinsupakul stated.

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

“Those 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 firm will proceed to put money into rising its tech crew, notably on the information and AI aspect, he added.

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

Currently, GrabMeals 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 Commercial Bank (SBC)’s Robinhood as of April 2023, based on 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 may be ample room for development. In February 2024, the penetration fee of on-line meals supply in Thailand stood at 27.14%, whereas that of grocery supply was at 17.34%.

As for ride-hailing providers, Chinsupakul stated folks in Thailand nonetheless use on-demand taxi providers through apps, however the online-only market could possibly be greater. Ride-hailing apps’ consumer penetration available in the market is anticipated to achieve 19.8% this yr, per Statista.

When requested if the corporate goals to grow to be an excellent app like Grab and GoTo, Chinsupakul stated Line Man Wongnai is aiming greater. “An excellent app is for the patron aspect solely, however Line Man Wongnai’s providers are for each shoppers and retailers. We are extra of a mixture of Meituan and WeChat Pay.”

The firm desires to deal with the Thailand market at this level and isn’t contemplating increasing into different Southeast Asian nations earlier than going public.

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