Line Man Wongnai, an on-demand meals supply service in Thailand, is contemplating an preliminary public providing on a Thai trade or the U.S. in 2025, the corporate’s CEO and co-founder, Yod Chinsupakul, mentioned in an unique interview with TechCrunch.
Line Man Wongnai has but to finalize the place it can launch the IPO, however a dual-listing in Thailand and the U.S. is just not off the playing cards, Chinsupakul mentioned.
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 centered 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 numerous fundraising choices,” Chinsupakul mentioned.
The corporate’s differentiators, based on 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), an internet 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 mentioned. What units the startup aside from its rivals, based on the CEO, is its skill to leverage Line’s huge person base, as lots of the app’s customers select to make funds by way of the linked Line funds app.
At present, the corporate affords every thing from meals and grocery supply and restaurant critiques, to a funds platform, POS for retailers, and ride-hailing — taking over rivals like Seize within the nation.
“Our historical past has confirmed that we’re nimble and have the flexibility to execute strategic M&A. We at all times assess potential funding alternatives in pursuit of our strategic aims, which can embody potential funding and/or M&A if it helps our longer-term targets. We’re very open,” Chinsupakul mentioned.
The CEO mentioned 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 mentioned. The corporate will proceed to put money into rising its tech group, notably 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 provide e-commerce companies, too.
Presently, 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 Business Financial institution (SCB)’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 companies, Chinsupakul mentioned folks in Thailand nonetheless use on-demand taxi companies through apps, however the online-only market might be greater. Experience-hailing apps’ person penetration available in the market is anticipated to succeed in 19.8% this yr, per Statista.
When requested if the corporate goals to turn into a brilliant app like Seize and GoTo, Chinsupakul mentioned Line Man Wongnai is aiming greater. “A brilliant app is for the buyer aspect solely, however Line Man Wongnai’s companies are for each customers and retailers. We’re extra of a mix 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.
