The Highest Earning Business in Shark Tank History? | Shark Tank AUS

Summary

Mo, Andrew, and Zach, founders of a fintech startup targeting millennials, pitch their innovative banking solution on a business show. They seek AUD 380,000 for 8.4% equity, highlighting features like personalized financial services and live transaction notifications. With a strong user base among university students and a successful marketplace app, they aim to revolutionize traditional banking with their QPay Mastercard. Despite some skepticism, they secure the full investment from one investor, showcasing their potential to disrupt the industry.

Takeaways

• 🏦 Mo, Andrew, and Zach are entrepreneurs aiming to revolutionize the banking industry for millennials with their business, CUPE.
• 💡 They are seeking an investment of $380,000 in exchange for 8.4% equity in their business, which is focused on disrupting traditional banking norms.
• 📈 CUPE is already working with over 150,000 university students through their marketplace app, where students can buy and sell items like textbooks and event tickets.
• 💳 The company is rolling out the 'qpay Mastercard', which will allow students to spend their money both on and off campus, integrating it with the qpay app for a seamless banking experience.
• 🌐 They have already raised $620,000 for marketing and operations and are looking to expand their business across Australia.
• 📊 CUPE generated $220,000 in revenue from 10 million transactions in Australia the previous year, showing significant growth from the year before.
• 🇬🇧 The founders believe that the UK market, which is three times larger than Australia, will be a significant source of growth and revenue.
• 📈 They aim to capture about 50% of the student market in Australia within the next three years, projecting a monthly transaction volume of around $190 million.
• 💼 CUPE operates as a corporate authorized representative of an Australian financial services license holder, ensuring they comply with legal regulations.
• 🤝 Despite some initial hesitations from potential investors, the founders successfully secure an investment deal for the full amount they requested, with one investor even agreeing to go halves with another.

Q & A

What is the business model of Mo, Andrew, and Zach's company?

Their business model revolves around disrupting the traditional banking industry by focusing on the millennial mindset. They aim to provide a banking experience that millennials would love, with features like live push notifications about transactions and personalized financial services.

What is the significance of the 'qpay' mentioned in the script?

Qpay is a product developed by the company that is already being used by one out of eight university students. It is a payment system that integrates with the qpay app, allowing students to spend their money on and off campus and online.

What is the equity stake the entrepreneurs are offering in exchange for investment?

The entrepreneurs are offering 8.4% equity in their business in exchange for an investment of $380,000.

What is the current status of their banking license?

They are not a bank yet, but they are a corporate authorized representative of an Australian Financial Services License holder, which means the services they provide fit within the legal regulations in Australia.

How do they differentiate their service from traditional banks?

They differentiate by focusing on the millennial demographic, providing personalized financial services, live notifications about transactions, and automatic discounts based on past purchases, which they believe traditional banks lack.

What is the company's revenue model?

Their revenue model involves taking a clip off every transaction and having affiliate relationships where they sell merchandise on their platform.

What was the company's revenue in the last year?

In the last year, the company made $220,000 in revenue.

What is the company's growth strategy in terms of market expansion?

Their growth strategy includes expanding to the UK, which is three times larger than Australia, and targeting university students through societies and clubs.

What is the projected market share the company aims to achieve in the next three years?

The company aims to capture around 50% of the student market in Australia in the next three years.

What was the outcome of their pitch in terms of investment?

One investor agreed to invest the full $380,000 for 8.4% equity, while another investor was interested but did not commit due to the equity percentage offered.