CoinOut Update 2024 | Shark Tank Season 09
CoinOut founder Jeff Witten appeared in Shark Tank Season 09. CoinOut is a payment app that offers the most convenient ways to digitalize your loose change.
After making a cash payment at a retail store, you could convert your loose change or coins into easy money through CoinOut. The best part is there’s no app to download, no financial information needed, and no sign-up is required until you’re ready to cash out.
The Sharks liked CoinOut features but are concerned about big payment companies taking over this business. Despite everything, Robert Herjavec offered $250,000 for 15% equity, which was never finalized after the show. Find out in this CoinOut Shark Tank update!
If you’re in a hurry and don’t have time to read the whole story, here’s a brief overview of what happened to CoinOut after Shark Tank!
Jeff Witten pitched in Shark Tank Season 09 and grabbed a deal from Robert Herjavec. However, Robert never finalized his agreement after the show. In 2018, Jeff added the receipts scan reward model and grew its user base to over 3 million monthly scanned receipts by 2021.
In terms of CoinOut updates, Informed Resources Inc. acquired this company in March 2021. As of March 2024, CoinOut is owned by IRI, generating over $24 million in annual revenue.
| Company Name | CoinOut |
|---|---|
| Founders | Jeff Witten |
| Founded | 2015 |
| Product | Loyalty reward program |
| Ask | $250,000 for 7.5% equity |
| Deal | $250,000 for 15% equity |
| Sharks | Robert Herjavec |
About CoinOut
Jeff Witten pursued law at Columbia Business School and was on a path to becoming a corporate lawyer.
However, after watching the Scrub Daddy episode on Shark Tank, he was inspired to become an entrepreneur and quit his full-time job at Apple.
In 2015, Jeff founded his company CoinOut, a payments processing application that appeals to both merchants and customers the same.
By bringing offline transactions to the online world, CoinOut intends to free cash-carrying clients and their preferred neighborhood sellers from the constraints and time-consuming associated with loose change.
Getting coins back from cash can be an inefficient, annoying, and foolish way to transact. So, instead of carrying around coins, you can use CoinOut to digitalize and store your loose change in your CoinOut vault.
Tap the cashout button in the application when you need to cash out. You can digitally donate the funds to a cause, get an Amazon gift voucher, or deposit the funds into a bank account.
No financial data is required to sign up besides adding a bank account to get paid.
Making change is a struggle for many small businesses, and this application simplifies things. For customers, it’s free to use.
The merchants pay $20 monthly to use CoinOut as a payment processing platform. The company also generates revenue from 3% for each transaction.
In terms of investment, along with his own money, Jeff raised $460,000 from family and friends.
After appearing on Shark Tank, CoinOut proactively transformed its past business model into a money cashback application. It gathered a vast user base of nearly 2,000,000 people before its Shark Tank feature aired.
According to Jeff Witten, the company’s success can be credited to the application’s simplicity. The app has minimal buttons, can submit receipts from any location, and offers immediate satisfaction by displaying cash-back rewards.
Customers could scan receipts from select dealers when the application was initially launched. Presently, you can earn cash back on any receipts.
CoinOut Shark Tank Pitch Recap
Jeff Witten started their pitch with an ask of $250,000 for a 7.5% stake in CoinOut. He explained CoinOut’s use case and how everything functions to the sharks.
As the payment industry is highly competitive, Kevin O’Leary said big players will crush this business like a cockroach.
Robert Herjavec said, “I think it’s a great idea! I hate carrying change,” then he asked how CoinOut makes money.
Jeff said, “We charge merchants $20/month and 3% on each transaction.”
Mark Cuban appreciated CoinOut’s consumer loyalty program of utilizing only the customer’s number for transfers of loose change. However, he didn’t like the business model, and he left.
Lori Greiner said, “I don’t know how I’m gonna get my $250,000 back,” and she’s out.
Realizing the potential of the application, Barbara Corcoran offered $250,000 for 15% equity, contingent upon Witten getting into 700 retailers before the year’s over.
Witten refused the offer because of contingency, and eventually, Barbara was out.
Kevin then offered $250,000 for 25% equity without contingency.
Witten promptly declined, stating that Kevin’s apathy toward the item throughout the pitch caused him colossal inconvenience. Also, Kevin’s offer was way above what Jeff first requested.
Robert offered $250,000 for 15% equity, contingent upon a successful pilot with a large-scale retailer.
Jeff countered $250,000 for 12.5% equity, but Robert didn’t move from his previous offer. Ultimately, Jeff agreed to Robert’s offer, and CoinOut got a deal in Shark Tank Season 09.
CoinOut Shark Tank Update
Even though Jeff got a deal in the tank, it was never finalized after the show. However, CoinOut gained immense popularity after appearing in Shark Tank.
In 2018, Jeff re-designed the CoinOut app so customers could earn cashback rewards by scanning receipts with their phones.
With this change, CoinOut grew its customer base to over 3 million monthly scanned receipts by 2021.
However, Informed Resources Inc. acquired this company in March 2021 for an undisclosed sum. By November 2021, the organization had $12 million in annual revenue.
As of March 2024, the CoinOut website is live and owned by Informed Resources Inc. This business has also been featured in Forbes and Fox magazines.
Other company updates from previous seasons of Shark Tank:
Conclusion
Jeff Witten founded CoinOut to resolve the problem of carrying around loose change. Out of the three sharks who made offers, Jeff accepted Robert’s deal, but after the show, it was never actually completed.
However, Jeff modified his business model after receiving valuable feedback from the Sharks. He transformed CoinOut into a whole new cashback app that customers have liked.
