D'Ontra Hughes wants a Shark to help him kill ATM machines with Spare, his app that's a virtual ATM, in Shark Tank episode 1019. Hughes founded Spare in 2013 and it's one of only a few Apple “whitelisted” mobile banking apps out there. It uses the app as a virtual ATM, allowing participating merchants to ditch ATMs and their processing fees. Spare actually pays merchants to dispense cash to customers, too.
With the app, a customer can request cash from a participating merchant. Customers upload funds to the app from a bank account, PayPal or other account; select the amount they want to withdraw, then request the cash from a nearby participating merchant. The merchant wins because they get foot traffic, reduce ATM fees and get paid by Spare to dispense cash. Less cash on hand means fewer trips to the bank for the merchant, too.
There are three competing apps that do the same thing as Spare, but they're all overseas. D'Ontra hopes to be first to market in the USA. So far, the company raised $347,000 in three rounds of funding – all of them convertible notes. It's unclear how many merchants signed on to date, but the company is looking for part-time employees to refer merchants. So far, it's only available on Apple devices, but Android can't be far behind.
Hughes likely wants a Shark to help with merchant acquisition as the more merchants that offer the service makes the app more valuable. Will a Shark want to invest in this ATM killing technology?
Spare Company Information
Posts about Spare on Shark Tank Blog
Spare Shark Tank Recap
D'Ontra will pitch the panel of five Sharks on the business and its prospects for growth. He'll need to convince Mark Cuban, Kevin O’Leary, Lori Greiner, Daymond John and Barbara Corcoran that the company is worthy of a Shark investment. A good business plan, good financials, and sales data will impress the Sharks, but he’ll need to show them HE is capable of running the company to “Shark standards." A full pitch re-cap on Spare will be available on Shark Tank Blog once this episode airs.
Spare Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Once an episode has aired, we monitor the progress of the businesses featured, whether they receive funding or not and report on their progress. The Shark Tank Blog will follow-up on Spare & D'Ontra Hughes as more details become available.