Apr 18, 2024 - Business

Walmart-backed Ibotta raises $577M in IPO

an illustration of a hand in a meditative pose holding four orange shopping bags

Illustration: Tiffany Herring/Axios

Ibotta, a digital rewards company, raised $577.3 million in its IPO Wednesday, pricing at $88 per share.

Why it matters: Pricing well above its range, the deal offers another sign the IPO window is opening.

What they're saying: Ibotta CEO Bryan Leach says the company picked its IPO date nine months ago, so the warm investor reception amid a slowly re-opening listing window is a relief.

  • "We thought about going out in 2021… but we didn't want to be lumped in with all the unprofitable SPAC companies," says Leach.
  • "We have an opportunity to be more visible now," he explains, adding that the company wanted to be able to post its Q1 earnings as part of the IPO process.

Zoom out: While Ibotta has been watching several venture-backed companies' IPOs — Instacart, Klayvio, Reddit — closely it compares its own business most to ad tech company TradeDesk.

  • "We are that same thing, but instead of distributing display ads on the open web, we distribute digital coupons," says Leach. The company charges advertisers per sale, adding that another key difference he says.

Zoom in: Leach also highlights that the company has diversified its retail partnerships beyond Walmart, which is also an investor in the company.

What's next: Eventually, Ibotta could go beyond retail and partner with other industries, like banks, or content creators, to help them better track the promotions-to-sales connection.

Between the lines: The IPO is also a significant liquidity event for many of its individual shareholders, including family and friends of Leach who are elderly and ready to get off the private company investor ride.

  • "We're also in Denver," he says, adding that the IPO will mint more than 150 millionaires locally.
  • And there's also the ability to attract more talented employees thanks to publicly traded stock.

Ibotta is expected to begin trading on the New York Stock Exchange later Thursday morning.

Go deeper