Colorado has a new unicorn.
Ibotta, the Denver-based mobile rewards platform, announced this morning that it has raised a Series D at a $1B valuation, becoming the state's latest private company to reach a ten digit valuation. The value of the Series D was not disclosed.
The round was led by Koch Disruptive Technologies (KDT), a Wichita-based investment firm headed by Chase Koch, son of billionaire Charles Koch. A subsidiary of Koch Industries, KDT focuses on investments that support Koch's core capabilities, as well as companies that create entirely new platforms. Koch Industries, a multinational corporation with subsidiaries in chemicals, energy, manufacturing and more, is one of the U.S' largest private companies with revenue over an estimated $110 billion.
“While we’ve reached the point of critical mass awareness when it comes to paying with our phones, there’s still one piece missing on the path to true adoption: rewards,” said Bryan Leach, Founder and CEO of Ibotta, in a statement. “Through a shared vision with KDT and our expertise in rewards and consumer psychology, we are best-positioned to transform the emerging $100 trillion global payments market."
In addition to supporting growth, the Series D will be used to accelerate hiring plans and expand its downtown Denver presence.
The latest round of funding comes on the heels of Ibotta's new payments service, which the company unveiled earlier this summer.
The service, Pay with Ibotta, enables customers to complete their entire purchase on the company’s app.
When shoppers use Pay with Ibotta, they can enter the purchase total and scan a barcode in the app for an instant, rewarded checkout. Unlike the company’s traditional offering that involves redeeming receipts, users are immediately given cash back upon purchase when using Pay with Ibotta.
To amplify the rollout of the new service, Ibotta partnered with a handful of retailers, including AMC Theatres, Chipotle, Home Depot, Old Navy and REI.
Founded in 2011, Ibotta originally started with groceries, but currently has partnerships with over 1,500 consumer brands, and has saved millions of customers over $600 million in cash back.
According to the company, over $200 million is expected to be earned through the platform this year alone.
