Rewards provider Ibotta eyes acquisitions

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Consumer rewards company Ibotta shops for bargains

, author of Illustration: Annelise Capossela/AxiosExit Content Preview Ibotta, a Denver-based provider of cash-back rewards programs, has set its eyes on acquisitions "to complement and augment" the network it is building, CEO Bryan Leach tells Axios. Why it matters: As Ibotta preps its exit strategy, the CEO sees a chance to strengthen the company by buying startups in need of cash. Details: The company's capital structure includes a line of credit and receivables the company can borrow against, Leach says.Acquisitions could either be in the U.S. or abroad, which is where Ibotta is eyeing its next big growth phase, Leach says.He cited Austin, Texas-based OctoShop, a Chrome browser extension that it in a multimillion-dollar deal, as an example of the kind of businesses Ibotta is interested in. By the numbers: Though Leach declined to comment on the company's revenue, he told 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.As of last year, Ibotta had provided $900 million in rewards to its customers via its 1,500 retail partners, according to , which cited the company as one of the fastest-growing businesses in the U.S.Ibotta employs 853 people as of September, according to PitchBook. Yes, and: The rewards program provider has raised nearly $246 million to date, including in 2019 that valued the business at $1 billion, conferring unicorn status, also according to PitchBook. Of note: Last year, Ibotta to launch a new digital offers program. The intrigue: As customer acquisition becomes both more difficult and expensive, brands are likely to turn to platforms like Ibotta that use incentives to lure in shoppers. The big picture: Further out, Ibotta has positioned itself well for an exit, Leach says, with an IPO, or a sale to either a PE firm as part of a roll-up strategy or a strategic acquirer as options.The company has discussed each option, he says, though he is focused on having the company IPO-ready, as that's something he can control.Whether or not it's an IPO, Leach agreed that having the public market open for offerings helps with price discovery. Yes, but: The executive did point to Red Ventures as a business that has successfully provided its investors with liquidity without going public, however.The one option Leach definitively ruled out at this stage is a SPAC.

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