Denver-based Ibotta files to go public in $100 million stock offering
After offering customers with greater than $1.8 billion again in money presents, Denver-based Ibotta Inc. is pursuing a long-anticipated cash-out from Wall Avenue, in line with the corporate’s registration assertion filed with the U.S. Securities and Alternate Fee on Friday.
The patron rebate platform, considered one of Colorado’s best-known know-how corporations, plans to boost $100 million in fairness, which if profitable would finish a dry streak for preliminary public choices within the state.
Ibotta offers cash-back rewards to customers who buy from the greater than 2,400 shopper items manufacturers it promotes. It additionally offers white-label rewards packages for giant retailers like Walmart, Kroger and Shell.
The corporate generated $320 million in revenues final yr, representing an annual gross sales progress fee of 52%. It turned a revenue of $32.1 million, reversing a lack of $54.9 million in 2022. Ibotta grew to become a uncommon Colorado unicorn or tech startup valued above $1 billion in 2019.
CEO and founder Bryan Leach stated in a letter within the providing assertion that he got here up with the thought for the corporate whereas on a flight again from a authorized convention in Brazil. A girl was photographing receipts on her cellphone so she may submit them for reimbursement.
He questioned what advantages customers residing paycheck to paycheck may reap if they might consolidate coupons and rebate presents in a single location. In 2011 he launched the corporate, which has the motto “Make Each Buy Rewarding,” within the windowless basement of an outdated downtown Denver hearth station.
The corporate can have broad latitude to make use of the cash raised “for normal company functions, together with working capital, working bills, and capital expenditures,” or translated in one other means — the way it sees match.
“We can’t specify with certainty the actual makes use of of the online proceeds that we’ll obtain from this providing,” Ibotta wrote.
The corporate directs adverts and promotions to customers of its app and web site. Slightly than having to clip coupons or juggle rebate presents from a number of producers and retailers, Ibotta consolidates them in a single place for customers, whereas additionally providing product makers and retailers a extra environment friendly option to attain these customers.
On a $5 field of cereal, an Ibotta consumer may obtain $1.30 again in money after buy, whereas the producer sends one other 80 cents to Ibbota for making the connection. That may present a greater return than printing or mailing out tens of hundreds of coupons, most of which gained’t be used.
There was a resurgence in U.S. IPOs this yr, with 30 elevating a mixed $7.8 billion, in line with Renaissance Capital, a supplier of pre-IPO funding analysis. Half of these choices raised $100 million or extra, probably the most in a single quarter since 2021.
Expertise IPOs have additionally garnered renewed curiosity with listings from social media platform Reddit and semiconductor producer Astera Labs.
Colorado’s final IPO of notice was Strong Energy, a Louisville-based maker of solid-state battery cells, which went public in December 2021 by way of a merger with Decarbonization Plus Acquisition Company III.
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