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Spare Shark Tank Update: What Happened After Shark Tank?

Summary

SEASON 10 EPISODE 20

PITCH

virtual atm network and mobile app

ENTREPRENEUR

D’ontra Hughes

ASKED FOR

$500,000 for 3.5%

GOT

$500,000 for 12% + advisory shares

SHARK

Mark Cuban

STATUS

IN BUSINESS

Company Background

What is Spare ATM?

Spare is a mobile app that allows users to withdraw cash without having to use their debit or credit card at a physical ATM. The user simply logs into their Spare account, uploads funds from their bank account, and sends a request for cash from a participating business. Once at the business, they scan a unique QR code and receive their cash request. This app is great for small businesses because it gives them the opportunity to increase foot traffic to their physical location.

Who is the Founder of Spare ATM?

D’Ontra Hughes is the fintech entrepreneur behind the creation of Spare. He is the patent holder of the digital ATM and the former vice president of Bellinity and Bellichiasmo. The Arizona State University Psychology graduate aims to lead a Fortune 500 company before 40 and is driven by innovation and disrupting current business models.

While in the midst of a career in the financial tech industry, D’Ontra decided that consumers needed a better avenue for withdrawing money from ATM services. This is what led him to create Spare. His expertise in the areas of business development, finance, and innovation makes his idea both unique and useable.

Founder’s Story

The idea of Spare ATM dawned on Hughes when he was working at a bar and patrons did not have change to tip. Having left JP Morgan, whilst sleeping on couches, Hughes developed his novel way for the unbanked and the underbanked to access cash, which the Federal Reserve determines to make up 22% of US households and one-third of the world population.

The company had accrued 2500 participant dealers countrywide and was already running 2700 transactions daily since its launch. In 2016, Spare received a radiant ranking from Portland’s Arcview Groups Investment Forum and consequently received a winners Fund Investment of $50,000.

In the same year, Spare App participated in the Mobile World Congress held in Barcelona, Spain. Hughes met Richard Trenholm, who featured the App in an article. In 2017, he was named the winner of a startup Pitch at the Money 20/20 2017 in Las Vegas. In January 2019, Spare App partnered with Gopher Protocol, a software company. The partnership has earned them a wide range of access to the unbanked community.

Despite raising approximately $350,000, he had not found any dealers or made excellent sales. This drove him to approach the sharks for a clean startup chance.

What Happened After Shark Tank Update

Did Spare Get a Deal on Shark Tank?

Hughes walked into Shark Tank, hoping to find a financier enthusiastic about giving him $500,000 in exchange for a 3.5% partnership in the business. He was looking for an investor who would assist with acquiring dealers, for the more the dealers offering the services, the more value the App gains. Mark Cuban saw the potential in the business and made Hughes the offer. They both settled on a deal of $500,000 in exchange for a 12% equity and a 2% consultative share.

Is Spare Still in Business?

Running the business hasn’t been easy for D’ontra. In an interview with the Direct Cannabis Network, he mentioned that being the only CEO caused him sleepless nights. He tried figuring out some tough decisions for the company. His advice was that it is essential to get external advisors who have been CEOs before.

In spite of the ups and downs of entrepreneurship, Spare is still up and running and D’Ontra has managed to keep the business going. Clients can now withdraw cash from local dealers and send cash from any digital wallet that includes PayPal, Apple Pay, and Coinbase.

The company has made expansions in its coverage areas, and users are required to download the App and survey the areas to choose the best option.

Read 4 Comments

0 thoughts on “Spare Shark Tank Update: What Happened After Shark Tank?”

  1. SPARE has grow to just over 32 states, serving 1.2M users monthly and has just over 75,000 locations.

    Reply
  2. I suggest you do a study on Kenya’s mpesa launched way before spare and see how 30 million plus Kenyans are now using it for mobile transactions of USD 12 billion every month. Hire me I can help with that big time.

    Reply

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