Line Man Wongnai serves 20% revenue boost in 2023 as losses trim

Thailand-based Line Man Wongnai, the on-demand services platform backed by Japan’s Line Corporation and Singapore’s GIC, posted solid revenue growth in 2023, according to its most recent set of audited financials.

Its revenue for the year stood at US$384 million, a 20% increase from 2022.

Photo credit: John And Penny / Shutterstock

The company’s services include messaging, taxi-hailing, and food and grocery deliveries. It also offers financial services, including lending to both consumers and merchants.

On top of trimming expenses in 2023, Line Man cut down on its cost of revenue – including delivery costs and marketing expenses – by nearly 7% to US$302 million. This, together with an increase in finance income and other gains, narrowed losses for the year by almost 85% to US$16.6 million.

Fueled by food delivery

Last year’s increase in revenue was primarily fueled by the rise in food delivery transactions in Thailand, Line Man’s sole market.

“We outpaced market growth in the food delivery sector [by] rapidly expanding our market share,” says In Young Chung, CFO of Line Man Wongnai, in a statement to Tech in Asia.

In Thailand, one report notes that the company has surpassed Grab in the food delivery sector in the first six months of 2024. It took an estimated 44% market share compared to Grab’s 40%, according to management consulting firm Redseer.

However, the report noted that Line Man and Grab have been alternating in market share leadership. It added that the country’s food delivery market is gradually shaping into a duopoly, with the possibility of a third major competitor emerging.

In another survey of over 3,400 respondents conducted between January and June this year, market research firm Kantar found GrabFood to be the most-used food delivery app in the country.

Line Man also showed cost discipline while continuing to expand in Thailand. In 2023, the company reduced expenses by 4% year on year to US$410 million, on the back of lower cost of revenue and selling expenses. However, administrative expenses rose nearly 35% between 2022 and 2023 to US$42.6 million.

Reducing cost of revenue is an important part of improving profitability, especially in an on-demand business like Line Man, which likely incurs substantial costs related to its delivery operations.

The firm’s cash flow from operating activities also reduced substantially, with US$119.8 million in cash and bank balances at the end of 2023.

Growing through acquisitions

Acquisition has been a key expansion strategy for Line Man.

IPO on the cards