The Spare: Have you got tired of standing in long queues at the banks or looking for an ATM that is always out of service? What would you do if an ATM itself came to you?
D’ontra Hughes started a financial app named Spare in June 2013. Spare Shark Tank’s net worth as of 2023 is $22.1 million. They are generating nearly $4 million in annual revenue.
In April 2019, they pitched Spare on Shark Tank season 10 and were able to make a deal of $500,000 from one of the Sharks named Mark Cuban in exchange for a 12% share and 2% advisory shares in their business. The final valuation was $4.1 million which was down from the inventor’s initial valuation of $14.3 million. As of now, Spare is running its business smoothly with millions of revenues.
Spare Shark Tank Net Worth 2022
In 2022, Spare had an approximate net worth of $22 million.
Spare Shark Tank Net Worth 2023
As of 2023, the estimated net worth of Spare is $22.1 million.
What Was The Net Worth Of Spare Before Appearing on Shark Tank?
Before appearing on Shark Tank, Spare had an approximate net worth of $14.3 million.
What Was The Net Worth Of Spare After Appearing on Shark Tank?
The net worth of Spare after Shark Tank was $3.57 million.
Who Is The Person Behind The Foundation Of Spare?
D’ontra Hughes introduced Spare in 2013. D’ontra Hughes is a professional who has 15 years of experience in the financial sector. He is also the creator of Lendup Financial Company.
D’ontra came up with the idea of creating a Spare Mobile ATM app while he was working at a hotel. He was too frustrated when he had to send a lot of customers across the street to use the ATM. He decided that he must find a solution to this problem.
After finding the rapid use of mobile and technology Hughes made up his mind to incorporate both aspects. To bring his idea into reality he at first managed to raise $500,000 from his friends and family members to fund his business and finally released the app in 2013.
After that, he made a partnership with Tactical Hardware. The app started to become successful in the first year of its inception and it had already acquired nearly 2500 dealers all over the country. Every day nearly 2700 transactions take place in Spare.
Spare obtained a winning fund of $50,000 from the investment forum of the Portland ArcView group. They took part in the Mobile World Congress in the same year which was held in Spain. Hughes was declared the winner in 2017 for start-up company 20/20.
The app made a partnership with a software company named Gopher Protocol which allows them to access unbanked communities. Hughes was able to raise only $350,000. He was unable to find dealers or make any outstanding sales. That is why he decided to approach the sharks.
As of 2023, the founder of Spare, D’ontra Hughes, has an approximate net worth of $19 million.
Key Accomplishments Of Spare Mobile ATM App
- 2019: Spare was represented on Shark Tank season 10 and got an investment of $500,000 from Mark Cuban in return for 12% equity and 2% advisory shares.
- 2021: Spare managed to raise $10 million in Series A funding led by Accel.
- 2022: The founder of Spare introduced the mobile app on the Google App Store.
A Short Overview Of Spare Mobile ATM App
The Spare Mobile ATM is a unique solution that puts banking at your fingertips no matter where you are. You can use the Spare Mobile ATM to get access to your cash quickly and easily no matter whether you are at a farmers market, a music festival, or a busy street corner.
It comes with an eye-catching design and cutting-edge technology. So, it is obvious that the Spare Mobile ATM would bring a revolution in the world of mobile banking.
The app took the ATM off just like a storm. With the help of a Spare Mobile app registered users can save themselves from making long trips in search of an ATM.
The Spare Mobile app enables one to get the amount of cash they want from the registered merchants. With the help of the Spare Mobile ATM app, users can see the merchants who offer this service through GPS.
The app allows one to easily link their online bank accounts or any digital app like PayPal or Apple Pay from which they will be able to withdraw their required money.
The Spare Mobile ATM generates a QR code that allows one to withdraw money from any nearby merchant.
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Spare Shark Tank Pitch
D’Ontra Hughes appeared on Shark Tank season 10 episode 20 in 2019 intending to get an investment of $500,000 in exchange for a 3.5% equity stake in his business. He expected that the sharks would help him to acquire dealers.
The founder shared with the sharks that he was looking to help the unbanked and under-bank. According to D’ontra, conventional banking charges $3 if you withdraw an amount of $20 from the ATM which is not at all clear to us.
After appearing on Shark Tank season 10 episode 20 when the founder of Spare, D’ontra Hughes asked for an investment of $500,000 in exchange for a 3.5% share in his virtual ATM app, Spare the Sharks have different opinions. Here is what they said:
After wishing D’ontra all the best Kevin O’Leary said that he was not ready to beat him up over the valuation. So he went out of the deal.
According to Lori Grenoer, it was indeed a smart idea but she did not believe her to be the best partner for D’ontra. So she left the deal.
Barbara Corcoran was unable to relate to the business and she did not require the service. That is why she too thought that she could not be the best partner for the founder of Spare. That is why she went out of the deal.
According to Daymond John, it was going to be a logistics challenge as the merchants would not want to keep so much cash in hand. So, he was out.
Mark Cuban liked the idea but he said that 3.5% is a very low equity stake.
When Mark Cuban said that he liked the idea but was not happy with the equity share, D’ontra made a counteroffer of 5%, but Mark wanted 15%. D’ontra then made another counteroffer that included advisory shares. Finally, Mark Cuban invested $500k in exchange for a 12% equity stage along with 3% advisory shares in the business. So, D’ontra Hughes left the Shark Tank stage with Mark Cuban’s funding proposal.
Spare Post Shark Tank Success
After representing the Spare company on Shark Tank, the founder of the company made a deal with Mark Cuban. But we have seen that the investment portfolio of Mark Cuban has not been listed on the website of Spare which indicates that the deal was never closed with him.
After this Spare was able to make partnerships with LiteLink Technologies, Master Card, and many more. For the deal with LiteLink Technologies Buck users were able to use Spare.
In 2020 they were able to generate $1.5 million in revenue and in 2021 they generated nearly $4 million in revenue.
Spare Shark Tank Update
This strategic pact promises a favourable future for Spare, sustaining its position as a disruptive commodity in mobile banking beyond Shark Tank.
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The Revenue Details Of Spare
It is still unclear to us how the merchants get registered on the app. The app lets the users withdraw the money they require from the nearest merchants. According to the founder, the fees are divided at 33% on every withdrawal.
As per the reports in 2020, the company was able to make $1.5 million in revenue. You will find the Spare app available on the Apple Store. It is now only available for the iOS users. The app is now under development to make it available for Android users.
Who Are The Alternatives To Spare?
There are a lot of alternatives to Spare. Some of the most important ones are as follows:
Is Spare from Shark Tank Still Active in Business?
Yes, as of 2024, Spare is still active in business. Although it faced some challenges it is still going smoothly and has managed to expand itself in other areas of the country.
What Are The Pros Of Spare Mobile ATM App?
The advantages of the Spare Mobile ATM app are as follows:
- It replaces the conventional ATM.
- It allows the customers to request cash from a participating merchant.
- The virtual ATM allows the participating merchants to ditch ATMs and their processing fees.
- This app allows you to take out money whenever you want.
- In comparison with the traditional ATMs Spare claims lower transaction costs.
- The platform supports a wider and potentially international merchant network.
- It enhances economic inclusion for people who are typically marginalized by the banking industry.
What Are The Cons Of Spare Mobile ATM Apps?
The disadvantages of the Spare Mobile ATM app are as follows:
- Some consumers might be reluctant to adopt a new model over traditional ATMs.
- Depending on merchants means the availability of cash is bound to their business hours and willingness to take part.
What Is The Future Outlook Of Spare?
As for the future outlook of Spare, the platform is predicted to expand its customer base and merchant partners with continuous funding and strategic partnerships.
They have to navigate the logistical challenges tactfully. However, the company had an optimistic potential for growth in this space.
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This shift offers a more streamlined way for people to collect cash through a mobile platform, potentially reshaping the ATM landscape.
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Spare is an app that is helpful for people who have issues with conventional ATMs, and it uses the app as a virtual ATM so that they can take out their money easily whenever they want.
It enables people to take out cash without any difficulties, and you can use the app to withdraw cash smoothly. The one thing that you want the most at all times is an ATM that allows you to smoothly take out money.
So, you know that there are going to be things that are out of your control at times, but when it comes to taking out cash, you know you have the best resource for doing that.
People who are exhausted and demoralized with spending the processing fees of ATMs and running around to discover the right ATM to take out cash from will get a lot of benefits from the app.
The app is designed to help people who have money crises. Since it is a virtual ATM it allows you to easily take out cash.
There are a lot of different apps that are available in the market and help you take out money from ATMs. There are a lot of people who are anxious about withdrawing cash from their ATM during certain times, and the Spare app permits you to withdraw cash without any difficulties. The virtual ATM is a blessing for people who do not want to pay the processing fees of banks and ATMs, and you are going to find the Spare app extremely useful.
The Sharks found the product incredibly useful for people of all types, and that is why they made an offer that was hard to withstand. The app continues to do well in the market and helps a lot of people.
What is Spare?
Spare Mobile ATM app is a mobile app that enables registered users to prevent themselves from making long trips in search of an ATM.
Who is the founder of Spare?
D’ontre Hughes founded the app in 2013 while working at a hotel.
Did the Spare mobile ATM app get a deal on Shark Tank?
Yes, the founder of the Spare Mobile ATM app, D’ontra Hughes was able to secure a deal from Mark Cuban by appearing on Shark Tank. Mark Cuban proposed to invest $500k in exchange for a 12% equity stake and 2% advisory shares.