Spare Mobile App Shark Tank Net Worth 2023
Spare Mobile App Shark Tank Net Worth
Spare is a mobile app that allows consumers to connect their bank account and access cash from participating merchants.
In Shark Tank Season 10, Mark Cuban invested $500,000 for 12% of the company at a valuation of $14.2 million. As of February 2023, Spare has not become a super successful business like some other Shark Tank rejects.
What is Spare Mobile App? Who is the founder of Spare Mobile App?
Spare is a mobile app that works like an ATM, allowing customers to withdraw cash from participating shops without needing a physical ATM.
To use Spare, customers can link their account to a bank account, PayPal account, or Apple Pay account, making it easy to access funds without a debit or credit card.
This innovative software benefits both consumers and participating retailers. Spare rewards retailers for dispensing cash, while also eliminating the expenses associated with traditional ATMs.
The founder of Spare, D’Ontra Hughes, is a financial entrepreneur who previously worked as a vice president at Bellinity and Bellichiasmo.
He has a degree in psychology from Arizona State University and is passionate about innovation and disrupting established business practices.
Hughes came up with the idea for Spare while working at a pub, where guests didn’t have coins to tip. He realized that there was a need for a more convenient method of accessing cash, particularly for the unbanked and underbanked populations.
According to the Federal Reserve, 22% of US households and one-third of the world’s population are unbanked or underbanked.
Although there are three other apps that offer similar services as Spare, they are all based in other countries. Hughes aims to be the first to market in the United States.
So far, the company has raised $347,000 in three rounds of financing through convertible notes. While the number of participating merchants is unknown, the company is actively seeking part-time staff to recruit new retailers.
Currently, the app is only available on Apple devices, but an Android version is expected to be released soon.
Spare Mobile App Shark Tank Pitch
D’Ontra Hughes pitched his virtual ATM program, Spare, on Shark Tank episode 1019 and expressed his desire for a Shark to join him in eliminating traditional ATM machines.
He sought a partner to assist with merchant acquisition, as the value of the app increases with more merchants offering the service.
D’Ontra was seeking $500,000 for a 3.5% ownership in his $14 million company, but the Sharks were skeptical of the valuation and asked about growth logistics.
They expressed concern that retailers might not want to have a large amount of cash on hand for app users. All but Mark dropped out, who offered $500,000 for a 15% stake.
After some negotiation, they settled on $500,000 for a 12% equity share and 2% advisory shares, and the deal was closed.
However, as of July 2019, the deal had not been finalized, and the company was not featured on Mark’s website. Moreover, the app had only been launched in Los Angeles.
As of February 2022, the deal with Mark was still pending, but D’Ontra continued to expand the company through collaborations with Master Card, LiteLink Technologies Inc., and others.
The collaboration with LiteLink in June 2019 allowed uBuck customers to access the Spare network, and the company is still operational, generating $4 million in annual sales.
Competitors of Spare Mobile App
The main competitors of Spare Mobile App in the market space are; HYAS InfoSec In, Absolute Software, MailChannels, LoginRadius, Kobal, Plurilock Software and Mirai Security.
Net Worth of Spare Mobile App
The company valuation was $14 million during the pitch. Since then the company is still operating and hence the company net worth might be more than that of pitch.
Spare Mobile App FAQs
What is Spare Mobile App?
Spare is a mobile application that functions similarly to an ATM. The software eliminates the need for a large automated teller machine at a retail location and enables participating shops to provide consumers with the cash they would typically withdraw from an ATM.
Who is the founder?
D’Ontra is the founder of Spare Mobile App. He had the concept for Spare ATM while working at a pub where guests lacked coins to tip.
How much was D’Ontra seeking at Shark Tank?
D’Ontra appeared on Shark Tank in seeking of $500,000 in exchange for a 3.5% ownership in his firm, which worth $14 million.
Did he have the deal?
Yes, he did the deal with Mark Cuban.
How much was the deal?
Mark offered $500,000 for 12% equity plus 2% advisory shares of the company.
Is Spare Mobile App still in business?
Yes, Spare Mobile App still operating and generates $4 million in yearly sales.
Where is Spare Mobile App based?
It is based in Las Vegas, Nevada. The firm operates out of a warehouse in which the software is stored on computer servers interlinked with a high-speed fiber broadband network.
How Spare Mobile App funds be used?
Funds will be used to acquire merchants and develop the application further.
What was the investment strategy of Spare Mobile App?
The strategy of Spare mobile app is to acquire sufficient merchants to make the application a viable alternative to a standard ATM.
How does Spare Mobile App work?
Customers link their Spare account to a bank account, PayPal account, or Apple Pay account, from which monies may be taken without the need of a debit or credit card. Spare also rewards participating retailers for cash dispensing, and merchants avoid the expenses associated with standard ATMs.
How does Spare Mobile App generate revenue?
Spare for merchants enables businesses to generate revenue from idle cash in their registers. Rather of paying banks to handle their money, Spare compensates banks on a per-transaction basis for disbursing monies to its customers. Spare merchants profit from greater foot traffic and income.
Is Spare Mobile App successful?
Spare has accumulated 2,500 participating retailers countrywide over the previous 2.5 years and is presently processing roughly 2700 transactions each day. Spare collected $500,000 from family and friends to begin the firm, as well as a convertible note valued at $9 million.
Why does Spare Mobile App take so long for my check to clear?
The initial check will not clear until they receive cash from their bank, which normally takes between 24 and 72 hours following submission. Users will not be eligible for immediate access on check deposits until they have processed their fourth check (and the prior three have cleared without incident).
Where can I use TWINT to withdraw cash?
If the digital wallet is accessible in Spare Mobile App, users can withdraw cash from any location within the network.
How does Spare Mobile App pay the Merchants?
Into their Spare bank account or merchants can arrange for monies to be transferred to another bank (for a fee).
What is the net worth of D’Ontra Hughes?
The net worth of D’Ontra Hughes is not known.
