Online food delivery platform Line Man Wongnai is investing 300 million baht in its largest marketing campaign in three years, aimed at expanding its user base and striving to become the market leader in revenue.
The company announced plans for an initial public offering (IPO) on the Stock Exchange of Thailand (SET) next year.
Currently, Line Man Wongnai boasts 10 million users.
According to data analytics firm Creden, Lineman (Thailand)—excluding Wongnai—reported revenue of 11.6 billion baht in 2023, marking a 49% increase year-over-year. However, the firm also experienced losses of 253 million baht last year.
In comparison, Grab Taxi (Thailand) achieved revenue of 15.6 billion baht in 2023, up 2.8%, and reported a 127% profit increase to 1.3 billion baht.
The online food delivery segment constitutes 15% of the total food market, valued at 180 billion baht.
“Thailand’s online delivery market still has potential for growth, with projections suggesting over 20 million users in the near future,” stated Yod Chinsupakul, CEO of Line Man Wongnai, during a recent announcement.
Despite facing economic challenges, he emphasized that this year has been positive for the food delivery sector, with growth estimates in the high single digits. Line Man Wongnai anticipates its growth will outpace the overall industry.
Mr. Yod highlighted that the 300-million-baht investment represents the company’s most significant marketing effort in three years. The “Everyday Lowest Prices” campaign aims to broaden the company’s user base and includes participation from 500,000 merchants, discount coupons, free delivery services, and a television advertising campaign alongside various online and offline marketing initiatives.
The campaign will run until the end of the year, with expectations of a 25% growth in the fourth quarter compared to the same period last year.
To enhance brand visibility, the company is leveraging the “Moon” mascot, a popular Line character, as its brand ambassador. This reflects the rise of mascot marketing and reinforces the brand’s image, according to Mr. Yod.
He also acknowledged the impending competition from existing food delivery app Robinhood, especially following its recent acquisition.
Moreover, e-commerce experts anticipate that foreign online marketplace operators will soon enter the on-demand and food delivery space. However, Mr. Yod believes that building a substantial merchant base and driver fleet will be a significant challenge for these foreign players in the short term.
Currently, Line Man Wongnai leads the market with over 700,000 merchants, and it plans to enhance revenue streams through merchant solutions, including rapidly growing point-of-sale and payment systems.
The company holds the highest service coverage in the country, reaching 328 districts.
Mr. Yod noted that the initial phase of the government’s digital handout scheme has reactivated inactive users in rural areas.
Looking ahead, the company is contemplating the introduction of a ‘borrow now and pay later’ service and is actively incorporating artificial intelligence (AI) to assist tourists and travelers by translating local content into English and Chinese.
Additionally, Line Man Wongnai is partnering with the Tourism Authority of Thailand to promote local food districts.
In his closing remarks, Mr. Yod emphasized the company’s goal to diversify its revenue by increasing income from point-of-sale and payment services to enhance profitability, noting that food delivery currently accounts for over 50% of its total revenue.
The company maintains its ambition to launch an IPO in the third or fourth quarter of 2025.
