Thai on-demand food-delivery startup, Line Man Wongnai, is in talks to buy Delivery Hero Southeast Asia’s Foodpanda, according to Bloomberg.

The deal was initially expected to value at around US$100 million and is likely to change due to the market downturn, the source said. No firm decision has been taken, the source added, and the negotiations could yet fail.

Line Man Wongnai, backed by Line Corp and Singapore’s sovereign wealth fund GIC, also aims to make an IPO debut in the next few years.  

Earlier this year, the Bangkok-based start up raised $265 million from GIC, PTT Oil and Retail Business, Taiwan Mobile and other investors, which put the company’s value at more than $1 billion. The announcement came as competition ramps up among food-delivery apps in Thailand. 

Line Man Wongnai was formed in 2020 as the result of the merger of delivery service Line Man and food review platform Wongnai and raised $110 million from BRV Capital. 

Thailand’s online food delivery market is estimated to experience double-digit growth this year, according to K-Research.