Rewards provider Ibotta considering acquisitions
Ibotta, a Denver-based cash rewards program provider, has set its sights on acquisitions “to complement and augment” the network it is building, CEO Bryan Leach told Axios.
Why is this important: As Ibotta plots his exit strategy, the CEO sees a chance to bolster the company by buying startups that need cash.
Details: The company’s capital structure includes a line of credit and receivables against which the company can borrow, Leach says.
- The acquisitions could take place in the United States or overseas, where Ibotta envisions its next big phase of growth, Leach said.
- He cited OctoShop, based in Austin, Texas, a Chrome browser extension that he acquired last December in a multi-million dollar deal, as an example of the type of companies Ibotta is interested in.
By the numbers: Although Leach declined to comment on company earnings, he said Ad Exchange that Ibotta has 120 million customers.
- Those customers then spend about $15 billion a year using the network, according to the Dallas Morning News article.
- Last year, Ibotta provided $900 million in rewards to customers through its 1,500 retail partners, according to Inc magazinewho cited the company as one of the fastest growing companies in the United States
- Ibotta employs 853 people in September, according to PitchBook.
Yes and: The rewards program provider has raised nearly $246 million to date, including a $150 million Series D in 2019 that valued the company at $1 billion, conferring unicorn status, also according to PitchBook.
To note : Last year, Ibotta in partnership with Walmart to launch a new program of digital offers.
The plot: As customer acquisition becomes both harder and more expensive, brands are likely to turn to platforms like Ibotta that use incentives to attract buyers.
The big picture: Further afield, Ibotta has positioned itself well for an exit, Leach says, with an IPO, or a sale to a private equity firm as part of a rollout strategy or to an optional strategic acquirer.
- The company has discussed every option, he says, although he’s focused on preparing for the company’s IPO because that’s something he can control.
- Whether or not it’s an IPO, Leach agreed that opening the public market to offers helps with price discovery.
Yes, but: The executive, however, singled out Red Ventures as a company that managed to provide liquidity to its investors without going public.
- The only option Leach is definitely ruling out at this point is a SPAC.