Zhitong Finance learned that digital marketing company Ibotta (IBTA.US) is seeking to raise approximately US$551 million through a larger initial public offering (IPO). The company and some existing shareholders plan to sell a total of 6.56 million shares at an expected price of $76 to $84 per share. If the IPO price is within the expected range, Ibotta's valuation could exceed 2.5 billion US dollars. In contrast, the company previously planned to issue 5.6 million shares at a price of 76 to 84 US dollars, and had planned to raise 450 million US dollars.
iBotta said in its IPO filing that its technology allows CPG brands to provide digital promotions to over 200 million consumers through a single convenient network called the iBotta Performance Network. The Denver-based company said it has established the largest digital product-level promotion network in the US through strategic partnerships with major retailers such as Walmart (WMT.US), General Mills (GIS.US), Kroger (KR.US), ExxonMobil (XOM.US), and Dallax of America (DG.US). Using an artificial intelligence (AI) -enabled quotation engine, the technology platform aims to match and distribute the right offers to the right consumers at the right time.
On the financial side, Ibotta's filing with the US Securities and Exchange Commission shows that the company handles promotions for more than 2,400 brands including Coca Cola, Whirlpool, and Herman. According to the documents, the company's revenue last year was US$320 million, up 52% year over year; net profit was US$38 million, compared to the previous year's net loss of US$55 million.
Ibotta's investors include Walmart, Koch Disruptive Industries, GGV Capital (GGV Capital), Harbor Spring Capital, and Haystack Partners. In 2019, Ibotta's valuation reached $1 billion in Series D financing led by Koch Disruptive Industries, an investment division of Koch Industries Inc.
According to the filing, Koch remains one of Ibotta's largest investors, holding approximately 21% of the company's Class A shares prior to the IPO. Clark Jermoluk Founders Fund 1 LLC owns 25% of Class A shares. Walmart is also one of the shareholders holding 5% or more of the shares and has the right to buy more than 3.5 million shares. Ibotta's founder and CEO Bryan Leach owns all of the company's Class B shares, which gave him nearly 79% of the voting rights prior to the IPO.