Walmart-backed Ibotta files for IPO showing profitability

Digital marketing software firm Ibotta filed for an initial public offering on the heels of this week’s successful debuts by Reddit and Astera Labs.

The Denver-based company, which helps brands to deliver mobile promotions through rewards and rebates, said in a filing Friday (Mar 22) that it turned a profit last year, reversing earlier losses. Ibotta, whose investors include Walmart, will disclose proposed terms for its initial public offering (IPO) in a later filing.

Bloomberg News reported in November that Ibotta was working with advisers and could seek to be valued in a listing at US$2 billion or more.

The filing follows offerings by social media platform Reddit and semiconductor connectivity company Astera, which met or exceeded their IPO goals, respectively, and then delivered gains in their trading debuts.

Ibotta handles promotions for more than 2,400 brands, such as Coca-Cola, Whirlpool and Hallmark, according to its filing with the US Securities and Exchange Commission. The company had net income of US$38 million on revenue of US$320 million for last year, compared with a net loss of US$55 million on revenue of US$211 million the previous year, according to the filing.

In 2019, Ibotta was valued at US$1 billion in a Series D funding round led by Koch Disruptive Industries, an investment arm of Koch Industries Inc. Other investors in the company have included Kleiner Perkins and GGV Capital US, according to data provider PitchBook.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Koch entities remain one of Ibotta’s largest investors, with about 21 per cent of the company’s Class A shares before the offering, according to the filing. The Clark Jermoluk Founders Fund 1 LLC owns 25 per cent of the Class A shares. Walmart, which has the right to buy more than 3.5 million shares, is also listed among stockholders with a 5 per cent or greater stake.

Ibotta founder and Chief Executive Officer Bryan Leach owns all of the company’s Class B shares, which gives him almost 79 per cent of the voting power before the offering.

Digital promotions now make up the majority of consumer promotions, with 87 per cent of consumers’ grocery purchases being influenced by offers, discounts, and promotions, Leach said in a letter to investors included in the filing. 

“The Ibotta experiment began 12 years ago in the windowless basement of an old fire station in downtown Denver,” Leach said. “So far, we have given approximately US$1.8 billion in cash back to US consumers on their everyday purchases.”

Ibotta’s board includes as a member Larry Sonsini, whose law firm, Wilson Sonsini Goodrich & Rosati, is advising the company. Sonsini owns about 1.3 per cent of the company’s Class A shares currently.

The offering is being led by Goldman Sachs Group, Citigroup and Bank of America. Ibotta plans for its shares to trade on the the New York Stock Exchange under the symbol IBTA. BLOOMBERG