Line Man Wongnai, a prominent on-demand food delivery service in Thailand, is weighing the possibility of an initial public offering (IPO) either on a Thai exchange or in the United States in 2025. In an exclusive interview, Yod Chinsupakul, the CEO and co-founder of Line Man Wongnai, revealed that the company has yet to finalize its IPO launch location but is considering a dual-listing in both Thailand and the U.S.
The success of Line Man Wongnai can be attributed to several factors. Chinsupakul highlighted the strategic partnerships with Line, Thailand’s most popular messaging app, as a significant differentiator. By leveraging Line’s extensive user base, Line Man Wongnai has gained a competitive edge in the market. Additionally, the company’s understanding of customer behavior, local merchants, delivery personnel, and the regulatory environment has contributed to its success.
Line Man Wongnai’s journey began in 2010 as a restaurant review platform. In 2020, it merged with Line Man, which offers food and grocery delivery, ride-hailing services, and a messenger app. The company further expanded its portfolio in 2023 by acquiring Rabbit Line Pay (RLP), an online and offline payment platform, and FoodStory, a Thai point of sale (POS) startup. These acquisitions bolstered Line Man Wongnai’s revenues and customer base.
Despite its achievements, Line Man Wongnai faces stiff competition from other players in the food delivery market in Thailand, such as Grab and GoTo. GrabFood currently leads the market with a 56% share, closely followed by Line Man Wongnai at 53%. However, Chinsupakul remains optimistic about the company’s future growth opportunities.
Chinsupakul emphasized that there is still room for expansion in the online food and grocery delivery sectors in Thailand. The penetration rate of online food delivery stood at 27.14% in February 2024, while grocery delivery had a penetration rate of 17.34%. Additionally, the market for ride-hailing services is expected to reach a user penetration rate of 19.8% this year. These statistics indicate significant potential for Line Man Wongnai to further capture market share.
When asked about becoming a super app like Grab and GoTo, Chinsupakul clarified that Line Man Wongnai aims to go beyond being just a consumer-focused platform. The company’s services cater to both consumers and merchants, making it more comparable to a combination of Meituan and WeChat Pay.
For now, Line Man Wongnai’s focus remains on the Thai market, and there are no immediate plans to expand into other Southeast Asian countries before going public. The company’s priority is to continue growing its POS business for merchants and payments services while investing in its tech team, particularly in data and AI capabilities.
In conclusion, Line Man Wongnai’s potential IPO in 2025 signifies its ambition to further solidify its position in the competitive food delivery market. With strategic partnerships, a comprehensive understanding of the market, and room for growth in Thailand, Line Man Wongnai is poised for continued success.
