Ibotta Increases IPO Goal to $551 Million

Cash-back rewards platform Ibotta has upped the size of its planned public listing.

Last week, the Walmart-backed company said it aimed to raise $472 million through an initial public offering (IPO). 

On Tuesday (April 16), the company raised that figure to around $551 million in new paperwork filed with the Securities and Exchange Commission (SEC), with the company planning to sell 6.5 million shares, close to one million more than in its past offering. The stock offering is projected to be priced at $76 to $84 apiece.

Ibotta’s platform lets companies deliver digital promotions to more than 200 million consumers via the Ibotta Performance Network (IPN), a network of publishers that allows marketers to influence consumers’ shopping habits.

“Unlike other forms of advertising, we cut consumers in on the deal, meaning whenever someone buys a product in response to a promotion, we pass along a portion of our advertising fee in the form of a reward,” CEO and Founder Bryan Leach said in a letter included with the company’s initial SEC filing.

“Because our offers are 100% digital, we can target promotions not merely based on what websites they have visited or where or when they have shopped, but based on which specific items they have bought in the past across a wide range of retailers, in-store or online. And we can tie everything out to a sale,” he added. 

Recent research by PYMNTS Intelligence has found that personalized offers from merchants can have a major impact on how consumers shop, although failing to understand a customer’s needs can bring about offers that fall flat.

The study, “Personalized Offers Are Powerful — But Too Often Off-Base,” showed that while nearly 83% of all respondents expressed interest in customized discounts and promotion offers, only 44% said the offers they get are relevant to their needs.

“This suggests a major missed opportunity for merchants, since nearly half of the consumers surveyed said truly relevant offers are likely to inspire them to switch merchants if they become aware of pertinent offers,” PYMNTS wrote in March.

Also in March, PYMNTS wrote that while investors seem to be preparing for an IPO resurgence, our FinTech IPO Index suggests they may want to proceed with caution.

“Of the nearly four dozen FinTechs tracked by PYMNTS Intelligence, only five names have been trading above their offer price,” that report said. “Despite the 55% gain in the FinTech IPO Index recorded for 2023, the absolute returns to date have been, at best, spotty.”