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Thai food delivery app Line Man Wongnai weighs IPO in Thailand, US in 2025 | TechCrunch

Thai food delivery app Line Man Wongnai weighs IPO in Thailand, US in 2025 | TechCrunch

Lineman Vongnai, an on-demand food delivery service in Thailand, is considering an initial public offering in 2025 on the Thai exchange or in the U.S., the company's CEO and co-founder, Yod Chinsupakul, said in an exclusive interview with TechCrunch.

Lineman Wonganai Chinsopakkal said it is yet to be decided where it will launch the IPO, but a dual listing in Thailand and the US is unlikely.

The company is backed by Singapore's sovereign wealth fund, GIC. Z Holdings, a joint venture between SoftBank and Naver, a South Korean Internet firm; and BRV Asia, among others. It has raised more than $372 million in total and is valued at more than $1 billion.

Chinsupakul said, “We are focusing on business continuity and restructuring as key priorities ahead of a potential IPO, and we will continue to review our capital structure and financing needs, including various fundraising options. options,” Chinsupakul said.

Image credit: Lineman Wonganai

According to Chinsupakul, the company's differentiator is its strategic partnership with Line, and its understanding of customer behavior, local merchants, delivery personnel and the regulatory environment.

Vongnai started in 2010 as a restaurant review platform. In 2020, it merged with The lineman, which offers food and grocery delivery, on-demand ride hailing, and a messenger app. Then in 2023, the company acquired Rabbit Line Pay (RLP)an online and offline payment platform, and Food StoryLaunch of Thai Point of Sale (POS). The company says the acquisition strengthened its revenue and broadened its customer base.

The merger with Linemen was a major milestone for Wongnai. Line is Thailand's most popular messaging app. – Used by more than 90% of Thais, the app has more than 50 million users in the country, Chinsopakkal said. According to the CEO, what sets the startup apart from its competitors is its ability to leverage Line's large user base, as many of the app's users choose to pay through the connected Line payment app. do

Today, the company offers everything from food and grocery delivery and restaurant reviews to a payments platform, POS for merchants, and ride hailing.

“Our history has demonstrated that we are nimble and capable of executing strategic M&A. We always evaluate potential investment opportunities in pursuit of our strategic objectives, including potential investments and/or M&A. Maybe if it supports our long-term goals, we're very open,” Chinsupakal said.

The CEO said the company plans to expand its POS business to serve merchants and payments.

“Those two other businesses are relatively smaller than our food delivery business (as we are a latecomer), so we want to multiply them,” Chinsopakkal said. He added that the company will continue to invest in growing its tech team, especially on the data and AI side.

Lineman Vongnai faces stiff competition in the food delivery space in Thailand from Singapore's Grab and Indonesia's GoTo, which have their own super apps and also offer e-commerce services.

Currently, GrabFood leads the food delivery market in Thailand with a substantial 56% market share, followed by Lineman Wongnai at 53%. Shopee comes in at No. 3, followed by Siam Commercial Bank's (SCB) Robin Hood by April 2023, according to a Report by Statista.

Room to grow in Thailand

Chinsupakul pointed out that online food and grocery delivery in Thailand is low and there is a lot of room for growth. In February 2024, the rate of online food delivery in Thailand was 27.14%, while Grocery delivery was at 17.34%.

As for ride-hailing services, Chinsopakkol said people in Thailand still use on-demand taxi services through apps, but the online-only market could be big. The user penetration of ride-hailing apps in the market is expected to reach 19.8 percent this year Statista..

Asked if the company aims to become a super app like Grab and GoTo, Chinsupakul said Line Man Wongnai aims high. “A super app is only for consumers, but Lineman Vongnai's services are for both consumers and merchants. We are more of a combination of Meituan and WeChat Pay.

The company currently wants to focus on the Thailand market and is not considering expanding to other Southeast Asian countries before going public.

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