Ibotta Inc. a U.S. retail shopping app that gives users cash back when they make purchases, has raised $40 million in Series C funding. The newest round of funding brings the company’s total amount raised to $73 million, according to reports.
Ibotta, which launched in 2011, contracts with brands and retailers to offer cash back on groceries, electronics, clothing, gifts, home and office supplies, and more. For example, a chain like Best Buy might offer consumers who spend more than $100 in-store or online a $5 cash-back reward in the Ibotta shopping app. To date, consumers have earned more than $40 million using the app, Ibotta says.
The funding round is led by technology entrepreneur Jim Clark, founder of Silicon Graphics and Netscape. Clark is on Ibotta’s board of directors. Ibotta says it will use the funds to hire as many as 300 more employees in its Denver home office and to establish contracts with more grocery, consumer packaged goods companies and retailers to expand its offerings.
“I’ve witnessed first-hand how Ibotta is using mobile technology to change how consumers shop, and how it is driving in-store sales for their partners,” Clark says. “Ibotta is the bridge that ties media to brick-and-mortar sales, at the item level.”
The Ibotta app has been downloaded more than 10 million times and offers cash-back promotions via its app from more than 150 retailers and 500,000 bricks-and-mortar locations.
Each week, Ibotta features cash-back rebates from brands and retailers, including daily essentials at grocery stores, apparel, beer, wine and spirits, and more
Brands only pay Ibotta a commission when a promotion results in a sale, which Ibotta and retailers track, says Ibotta’s CEO, Bryan Leach. Leach likens Ibotta to an offline affiliate program, with an emphasis on loyalty. He says consumers are three times more likely to return to a retailer’s store or website to make a purchase after engaging with an Ibotta promotion than if they did not use Ibotta, according to the company’s own research.
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