Ibotta Seeks $472 Million in IPO as Consumers Seek Personalized Rewards

Cash-back rewards platform Ibotta hopes to raise $472 million when it goes public.

The company on Monday (April 8) filed paperwork with the Securities and Exchange Commission (SEC), saying it planned to offer 2.5 million shares, at $76 to $84 each.

Last month, Ibotta filed a registration statement for its IPO without offering details about its share offerings. A report from November said the company was preparing for an IPO that could value it at $2 billion or more, at least twice the amount Ibotta was valued at in a Series D funding round in 2019.

Backed by Walmart, Ibotta’s platform lets brands deliver digital promotions to more than 200 million consumers through the Ibotta Performance Network (IPN), a network of publishers that lets marketers influence consumers’ shopping habits.

The company has more than 850 clients, including Nestle, Hallmark, Lego, and both Coca-Cola and its chief rival Pepsi.

“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 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.”

Recent research by PYMNTS Intelligence shows that personalized offers from merchants can have a significant impact on how consumers shop, although failing to fully understand a customer’s needs can lead to offers that fall flat.

The study, “Personalized Offers Are Powerful — But Too Often Off-Base,” based on a survey of more than 2,500 U.S. consumers, showed that almost 83% of all respondents were interested in customized discounts and promotion offers, while 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.

That means that if business owners want to transform casual patrons into loyal customers, they need to do more than send them generic coupons and discounts. Rather, merchants should craft data-driven deals showing they understand their customers’ specific needs.