Digital marketing firm, Ibotta, supported by retail giant Walmart (WMT.N), has officially filed for an initial public offering (IPO) in the United States. The announcement came through a recent filing, which revealed the company’s intention to go public on Friday.

The Denver-based firm boasts an impressive client roster, including industry heavyweights such as PepsiCo, Nestle (NESN.S), and Coca-Cola (KO.N), contributing to its expansive list of over 850 clients. While the offering’s size remains undisclosed, Ibotta’s financial growth is notable, with a 52% increase in revenue to $320 million in 2023 and a 12% rise in net income margin, as per the filing.

Established in 2011 by entrepreneur Bryan Leach, Ibotta has carved a niche for itself by providing digital promotions and cash-back rewards, enhancing the shopping experience for consumers across a variety of everyday purchases.

The timing of Ibotta’s IPO aligns with a resurgence in the U.S. IPO market, buoyed by diminishing concerns over high borrowing costs. This week’s successful debuts of Reddit Inc (RDDT.N) and Astera Labs (ALAB.O), which saw their shares soar, have injected optimism into the market, marking a return to IPO activities after a near two-year slowdown.

Ibotta is set to join the New York Stock Exchange, trading under the ticker symbol “IBTA”. The IPO is being spearheaded by leading financial institutions Goldman Sachs, Citigroup, and BofA Securities, serving as the primary underwriters for the venture.

Ibotta generates revenue through a combination of affiliate commissions, advertising services, and the sale of aggregated and anonymized data to other businesses. The company operates under an affiliate business model, partnering with over 1,500 brands to offer cashback rewards to users for their purchases.

When users shop through Ibotta’s platform, either online or in-store, and redeem offers, Ibotta earns a commission from the retailers. A portion of this commission is then passed back to the users as cashback.

This incentivizes users to make purchases through the app, driving more sales to the partnered retailers and creating a win-win situation for both the consumers and the businesses involved.

The New York market has been a burgeoning hub for tech startups and IPOs, especially after a decade-long run of successful public offerings. Notable venture firms like Sequoia Capital have expanded their presence in New York, and IPOs of companies such as Datadog, MongoDB, and DigitalOcean have created a rich ecosystem that’s conducive to new startups.

Despite the tech industry still recovering from a challenging 2022, New York’s tech scene remains resilient and optimistic. The state ranked second only to California last year in terms of startup investments, with $29.2 billion invested across 2,048 startups. This indicates a thriving environment that could be favorable for tech IPOs, including Ibotta’s upcoming listing.

However, it’s important to note that market conditions can fluctuate, and the success of an IPO can depend on various factors, including investor sentiment, market trends, and the financial health of the company going public. Therefore, while the New York market has shown strong potential for tech IPOs, each company’s situation should be evaluated individually.

Some recent tech IPOs in New York include:

SolarMax Technology, Inc.: Specializing in the energy sector, SolarMax Technology went public on February 27, 2024, with an offering that was within its expected range, raising over $20 million.

Reddit Inc.: Making a splash as one of the first major tech IPOs since Pinterest in 2019, Reddit debuted on the New York Stock Exchange under the ticker “RDDT” with its shares priced at $34, raising $748 million for a valuation of about $6.4 billion.