1 week Ago
Line Man Wongnai is preparing to file an initial public offering (IPO) by the third quarter of this year, hoping to list on the local bourse in 2026. The company wants to grow by 20% this year thanks to its online food delivery business and the uptick in Generation Z using this service. Line Man Wongnai also expects to attain profitability this year.
The online food delivery market still has ample room for growth, with a market value of 120-150 billion baht, while Thailand's total food market is worth 800-900 billion, said chief executive Yod Chinsupakul. "Unfavourable economic conditions affected spending per order for online food delivery, but it remains at 200-250 baht per order as inflation has increased food costs," he said. Thailand's restaurant market is estimated to be worth 700-800 billion baht a year and is projected to grow 5% this year, said Mr Yod.
The online food delivery market is expected to expand 10% this year as users, particular those in Gen Z, continue to place orders online, he said. "We want to grow by 20% this year as our economy of scale helps to penetrate the market, with 650,000 restaurants on our platform and more than 26 million users," said Mr Yod. He said there are only two to three other major players, while small delivery firms do not have enough drivers or the economy of scale to compete.
"The online food delivery market comprises 15% of the total offline food restaurant market. This rate can increase to 25-30%, similar to China," said Mr Yod. Every year, around 100,000 new restaurants open and 100,000 close.
In the first quarter of this year, only 19,000 new restaurants opened compared with 22,000 in the first quarter of 2024, he said. Line Man Wongnai continues to launch promotional campaigns as it gains traction and economies of scale, said Mr Yod. Users will soon be allowed to order food and grocery products in a single combined order, an upgrade from separate orders required presently, he said.
Users can also order from two restaurants in a single order, while the company plans to allow users to order groceries via its Line Mart feature soon, said Mr Yod. Line Man Wongnai spent 300 million baht on online and offline campaigns as part of its "Users' Choice Best of 2025" award campaign to strengthen its industry footprint. The awards are for restaurants that receive positive user reviews.
This year 650 restaurants were awarded out of 700,000 nationwide. The winners can promote the awards to generate sales and participate in related promotional campaigns, he said. Mr Yod said the company did not post a profit in 2024, but expects to this year, with the listing plan likely to be filed in the third quarter.
Before commencing the listing, the company expects to wait more than six months given current stock market sentiment, he said. Line Man Wongnai recorded a profit for merchant solutions and food delivery, but it still needs to increase usage and user numbers for Linepay, as well as expand its market share in the ride-hailing segment, said Mr Yod..
