The retail shopping app that gives users cash back when they shop, received $40m in Series C funding led by Jim Clark. The company said it will use the money to help aggressively scale its mobile loyalty platform.
Ibotta has come a long way from its humble beginnings three years ago when its founder and CEO, Bryan Leach quit his legal profession to start a business.
“People told me it was really hard to start a company. And it was really hard to change professions. Well, we’ve raised $73 million in the last three years,” he said at the Denver Startup Week event.
Ibotta currently has over 10 million downloads in the United States and partnerships with more than 150 leading retailers at over 500,000 locations across the country.
Ibotta’s main attraction is its cash back feature. Rather than doling out loyalty or reward points, Ibotta has partnered with brands to offer cash rebates. Customers tap on products featured on the app and they then have to engage with the brand in some way – answering a question, watching a video or learning a fact. Depending on the deal, customers can get back as much as a dollar per interaction.
For advertisers, the company facilitates direct interaction with consumers, and its pay-for-performance model ensures that brands and retailers only pay for their mobile media and engagement when it results in a verified sale.
The $40m injection will be used to aggressively expand the company’s operation by hiring an extra 200-300 staff and relocating to a new 38,000-square-feet office.
The funding round totalled $61m, and will used to finance the company's global expansion plans.
Monzo also revealed its latest funding round last week.
A further £2.5m is expected to be raised from crowdfunding on Tuesday.
Funding Circle has perhaps started 2017 in a better way than most. The London-based lending platform that connects small businesses with investors has raised $100m (£82m) in equity investment.