Automated Rebate Startup Ibotta Raises Another $25 Million Dollars
Do you remember the 90’s and the early part of the 2000s where it seemed like every big ticket purchase you made had some kind of “mail in rebate”. It would be super frustrating to go into Best Buy, buy a new 300 pound tv with $500 off, just to find out the $500 was through some mail in rebate. You would need to take a copy of the receipt, cut off the barcode of the product and mail it into the Best Buy rebate center. Then you would wait anywhere from 4 weeks to eternity to get your money back. It was an awful experience and manufacturers and retailers banked on the fact that most customers wouldn’t bother with the rebate process.
During the early part of the 2000s Best Buy started converting most of their rebates to “instant rebates” or “instant savings” realizing that customers were walking out of the store rather than messing with a mail in rebate. If Best Buy had one 50″ tv with a $500 mail in rebate and Circuit City across the street had the same tv for a straight $150 off, Circuit City would be more likely to get the sale.
Well the folks at Ibotta know the pain of the rebate all too well and for that they created an amazing app that’s giving customers money. Users simply create an account, scan their receipts into the app and if a product is eligible for a rebate or the product’s price changes and the user is entitled to some money back, Ibotta gets that money for the customer and puts it right into their Ibotta account, it’s practically magic. The app has been downloaded over 23 million times.
The Denver based company employs over 400 employees that occupy 76,000 square feet. They plan on hiring an additional 92 employees by the end of the year. They’ve also raised $93.5 million dollars to date including a new $25 million dollar Series D round led by Silicon Valley based GGV Capital. New York based Harbor Spring Capital and Haystack Partners also participated in the round, as did previous investors Jim Clark and Tom Jermoluk, according to this report.