Are you tired of standing in long lines at the bank or searching for an ATM thatās always out of service? What if you could have an ATM that comes to you?
Introducing the Spare Mobile ATM, the innovative solution that puts banking at your fingertips, wherever you are. Whether youāre at a music festival, a farmers market, or a busy street corner, the Spare Mobile ATM is there to provide you with quick and easy access to your cash.
With its eye-catching design and cutting-edge technology, the Spare Mobile ATM is sure to make a splash in the world of mobile banking. So dive in with us and letās make banking more convenient than ever before!
Dāontra Hughes introduced his product Spare Mobile App in season 10 episode 20 of the show. He was seeking an investment of $500,000 for 3.5% of the investment. The app transforms the digital balance of a person into cash without any card.
Spare Mobile ATM at a glance:
- Free ATM network that connects the local community.
- Founder: Dāontra Hughes
- Asked For $500,000 for 3.5% at a $14.2 million valuation on Shark Tank.
- Received $500,000 for 12% + Advisory shares from Mark Cuban.
- In business.
Index:
What is the Spare ATM app?
Spare mobile ATM app is a mobile app that took the ATM off by storm. A Spare mobile app lets the registered users save themselves from making long trips to in hunt of ATM. With a Spare mobile app, one can get the requested amount of cash from the registered merchants. The Spare Mobile ATM app allows users to see the merchants that provide this service through GPS.
One can link their online bank accounts or any digital app such as PayPal or apple pay from which requested money can be withdrawn. The Spare Mobile ATM generates a QR code with help on this one can withdraw money from any nearest merchant.
Founders story:
The Spare mobile ATM app was founded by DāOntra Hugehes in 2013. DāOntra had the idea of the app when he was working at a hotel. He was frustrated by the number of times he had to send customers across the street to use the ATM. He wanted to find a solution to this.
Hughes saw the rapid use of mobile and technology and he decided to combine both aspects. Hughes raised $500,000 from family and friends as initial capital and launched the app in 2015. He then partnered with tactical hardware. The app was seeing success in the first year of the launch and it already had 2500 dealers countrywide and 2700 transactions were taking place every day.
Spare received a winner fund from Portland ArcView groupās investment forum of $50,000 and in the same year, they participated in the mobile world congress held in Spain. In 2017 Hughes was named the winner of start-up money 20/20 in 2017.
The app partnered with a software company called Gopher protocol which gives them access to the unbanked community. Hughes had raised approximately $350,000 yet he had not found dealers or made any excellent sales which were the reason DāOntra approached the sharks.
How was the Spare Shark Tank pitch?
DāOntra Hughes appeared on the Shark Tank in season 10 seeking an investment of $500,000 for 3.5% of the equity hoping he would get help from the sharks in acquiring the dealers. The founder told the shark that he was looking to help the āunbankedā or āunderbankedā. DāOntra explains that the traditional baking charges $3 on a $20 withdrawal from the ATM which remains unclear.
OāLeary was the first to back out of the deal. Lori backs out stating she couldnāt be much help this business. Barbara states she canāt see herself needing the service and she backs out. Daymond doesnāt think merchants would want to keep so much cash in hand and steps out of the deal.
DāOntra finds himself with only mark Cuban. Mark says he isnāt too impressed with receiving 3.5% of shares for $500,000. After negotiating with mark DāOntre received $500,000 for 12% of the company and offers 2% advisory shares. D.Ontre Hughes accepts Markās offer and walked out of the tank.
Investorās details:
The Spare mobile ATM was founded in 2013 since then the app has received funding from various sources.
| Year | Investors | Amount |
| 2015 | Various sources | $500,000 |
| 2017 | Portland acrew investment forum (winning fund) | $50,000 |
| 2018 | Mark Cuban | $500,000 +2% advisory shares |
What Happened to Spare After Shark Tank?
As per Mark Cuban investment portfolio on his website Spare is not listed which signals that deal never closed with him. But even after this Spare partnered with Ā Master Card, LiteLink Technologies Inc., and others. Also, the deal with LiteLink technologies enables uBuck users to use Spare.
In 2020, they reported a revenue of about $1.5 million and as of June 2021, they reported about $4 million in revenue.
Spare revenue:
It is still unclear how the merchants get registered on the app. The app allows the user to withdraw money from the nearest merchants. The founder revealed the fees are separated at 33% on each withdrawal. According to the owler website, the app made $1.5 million in 2020.
The spare app is available on the Apple store and is available for IOS users. Currently, the app is under development to make it available for Android users as well.
Spare net worth:
Spare asked For $500,000 for 3.5% at a $14.2 million valuation on Shark Tank but received $500,000 for 12% from Mark Cuban at a valuation of 4.16 million. Also, in 2020 they made a revenue of about $1.5 million.
Alternatives to Spare:
During the pitch DāOntre states there were, competitor apps in the market but they still hadnāt covered the area he was working in. following are some of the competitorās analyses.
- Sonect:
Sonect is an online matchmaking app that lets a person pick up money from shops. The company has received funding of $8.6 million and the company earned $1 million this year.
- soCash:
soCash is a digital cash circulation app that connects different banks retailers and individuals in need of cash. Founded by Hari Palaparambil the company has total funding of $6.5 million and earned $1million last year.
- Barzahlen:
Founded by Achim Boensch is the biggest payment infrastructure in Europe which allows the customers to withdraw cash with the barcode. The company earned $5.6 revenue last year.
Is spare from shark tank still in business?
Spare is still in business and being in ups and down still going strong and expanded in other areas of the country.
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FAQs:
What is Spare?
Spare mobile ATM app is a mobile app that took the ATM off by the storm. A Spare mobile app lets the registered users save themselves from making long trips to in hunt of ATM.
Who founded Spare?
The Spare mobile ATM app was founded by DāOntre Hughes in 2013. DāOntra had the idea of the app when he was working at a hotel.
