LINE MAN Wongnai and LINE Company (Thailand) Limited have acquired the shares of Rabbit LINE Pay Company Limited (RLP) from its previous shareholders, RabbitPay System Company Limited and Advanced mPAY Company Limited. The companies revealed the collaboration in a joint statement released on Thursday.
This acquisition integrates RLP’s payment services more deeply within the LINE ecosystem, including LINE MAN, LINE SHOPPING, LINE App, and Wongnai’s extensive network of merchants. The endeavor aims to enhance user convenience and expand the reach of these services across various platforms.
Under the terms of the agreement, Yod Chinsupakul, currently CEO of LINEMAN Wongnai, and In Young Chung, the CFO, will transition into their new roles as the CEO and CFO of RLP, respectively. Importantly, the merger will not disrupt RLP users, who can continue accessing its payment services through existing channels, such as the BTS Skytrain ticketing system and AIS’s bill payment services, ensuring a seamless customer experience.
While the specific financial details of the transaction remain undisclosed, Krungsri Securities anticipates that VGI, a media advertising company, will be listed on the Bangkok Stock Exchange. The parent company of RabbitPay System will realize a gain of 300 million baht (equivalent to $8.5 million) from this divestment in the second quarter of the 2024 financial year. This indicates the strategic value of this move within the digital payment landscape.
Line Man Wongnai operates as a comprehensive e-commerce platform, offering services such as food and grocery delivery, taxi booking, messenger services, local business reviews, and restaurant solutions.
It achieved unicorn status following a significant Series B funding round, raising $265 million. This round was led by GIC and Line in September of the previous year, reflecting the growing prominence of Line Man Wongnai in the digital services landscape. With a dedicated workforce of over 1,000 employees, the company is committed to making a substantial impact by connecting millions of users in Thailand and enhancing their daily lives.
Established in 2014, Line Thailand plays a pivotal role in managing local sales and marketing strategies while spearheading the development of new businesses and services tailored to the Thai market.
It offers a comprehensive digital ecosystem featuring various services. The platform has a monthly active user count of 54 million as of June 2023.
The joint acquisition of Rabbit LINE Pay by LINE Thailand and LINE MAN Wongnai strategically connects the LINE app with LINE MAN’s on-demand services and LINE SHOPPING’s chat commerce capabilities.
LINEMAN has a history of mergers and acquisitions, with LINE MAN Wongnai being formed in July 2020 through the merger of LINE MAN, a Thai on-demand assistant app, and Wongnai, a platform once dubbed the Yelp of Thailand. It operates as a unit under Japan-based LINE Corp.
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