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Take an inspiring trip into the post-Shark Tank evolution of CoinOut, an application that reinvented digital receipts and cashback rewards.
In a digital transaction-dominant world, the app, established by the progressive agile Jeff Whitten, came out with a vision of changing how consumers interact with their finances.
In the following article, we embark on an adventure to delve deep into the fallout of the app’s showing on Shark Tank.
For those curious about the intersection of innovation and investment, this venture is a comprehensive explanation of the app’s goals; the novel product promoted to the Sharks; and the most important decisions in the series.
If you’re an entrepreneurship fan, an avid Shark Tank fan, or an investor in search of real entrepreneurial journeys, then show up to our session where we’ll reveal the story behind CoinOut- from pitch to now.
CoinOut Key Highlights
- CoinOut was founded in 2017 by Jeff Whitten with a goal to simplify digital transactions by converting loose change into digital cash.
- Initially focusing on converting change, CoinOut later transitioned to a cash-back app rewarding users for scanning receipts.
- After appearing on Shark Tank, the appreceived significant funding, expanded its user base, and was eventually acquired by Informed Resources Inc.
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What is CoinOut?
Probably a lot of you do not know CoinOut at all. I will acquaint you with the main topic of this article since CoinOut was one of the companies that presented in Shark Tank Season 9. CoinOut was put forward as a simple way to deal with the problem of having to carry around loose change.
CoinOut lets one receive their small change, not those wobbly coins which are hard to carry, keep and count.
By using the app one did not have to carry coins with him, but he could get any cash there immediately into the bank account, donate it today to charity, let it appear in the form of Amazon gift cards or redeem it in the store.
| Name | CoinOut |
| Founders | Jeff Witten |
| Product | A digital receipt tracking platform with a unique app that allows users to scan receipts and claim rewards |
| Features | Provides cashback of up to 0.5-0.15 cents on the dollar for every receipt scanned, whether it is an in-store receipt or an online receipt |
| Initial Funding | Released in the CLOVER app distribution market in February 2016 |
| Shark Tank Appearance | Season 9 |
| Shark Tank Deal | Robert Herjavec offered $250,000 for 15% equity |
| Websites | Site, Instagram, Play Store |
You just have to let the shopkeeper know that you want to withdraw and from there, you have to choose whether to put all the money in your account or change and give them your mobile number. And when you next blink the money will be in your account.
The good thing is that there is no necessity to download the app and to finish replicated sign-ups and logins. In time the app changed its business module and also modified the service.
CoinOut was created as an app that rewards customers by scanning their receipts. The company now makes most of its revenue through referral fees and by selling aggregate data about shopping patterns and behaviours. The Founder appeared in Shark Tank Season 9, 2017.
Who Is The Founder Of CoinOut?
Jeff Whitten started CoinOut. Jeff was a law student at Columbia Business School Graduate at the time he watched the ‘Scrub Daddy’ episode of Shark Tank and now wanted to do something similar.
He also confessed himself on the show to having turned down a full-time deal from Apple and also completely given up his whole aspiration as a corporate lawyer.
He tried out the things he could do and after a long period, he just found a chance to introduce his product in 2017, namely, the app. In the show, he showed exceptional self-assurance and precision.
What was the offering made by the founder of “CoinOut” for the investors?
For $250,000 on the show, the app sold 7.5% of their partnership. The concept was first met with laughter from investors who thought Jeff was weak and could not stand up to the industry heavyweights.
It was surprising what happened next, though.
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Did CoinOut get a deal on Shark Tank?
The Sharks believed that most players in the industry could go than them if they went down. They also believed that the app was not the only way to get compensated; they could use a credit card instead. Sharks’ main issue, one of them pointed out, was to get people to use CoinOut rather than others.
Much of those times Sharks did not see the potential in the offer and declined to invest.
Jeff detailed how they could improve it by working with large retail chains such as Domino, and others. He noted that in a year after the episode, they might get connected with 3000 retailers. Jeff too declined Kevin’s offer due to the high stakes demanded.
Barbara, one of the sharks, countered at $250,000 for a 15% stake, on the condition that he had to get several customers at year-end. The other Shark, Robert offered the asked amount for 15% equity and an execution of a successful pilot with big retailers.
| Episode | Season 9, Episode 23 |
| Entrepreneur | Jeff Witten |
| Business | CoinOut, a digital receipt tracking platform with a unique app that allows users to scan receipts and claim rewards |
| Ask | $250,000 for 7.5% equity |
| Result | Robert Herjavec offered $250,000 for 15% equity |
| Current Status | The business is still booming with millions of scanned receipts during the 2021 calendar year, which helped generate more than $10 million in gross revenue |
Jeff was trying to bargain and get the quitclaim reduced to 12.5%. Also, he finally had to take Robert’s offer and left after completing his task.
How CoinOut started & how it did?
In 2017, Jeff Whitten founded his company to resolve a universal issue. His goal was to solve the issue without adding more complexity, therefore he created a straightforward user interface.
In this world of suppliers and vendors, transparency, along with the inherent quality of the application, made it a solid contender.
What happened to CoinOut Before Shark Tank?
Before starting their journey on Shark Tank, CoinOut already raised $460,000 in investments, some of them gathered from Jeff’s part and some from his family and friends’ sources.
After the four months of operation of the app, before appearing on Shark Tank, there were 2500 transactions, and the customers also appreciated it very much. As per data, the valuation of CoinOut was $3.3 Million at the time when it was in Shark Tank.
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What happened to CoinOut after Shark Tank?
CoinOut received substantial funding of $2.7 Million in more than three rounds after appearing in Shark Tank.
They gained a lot of publicity too after they were on Shark Tank. CoinsOut changed its business into a cash-back app which caused the boost of its popularity.
The last revenue record of CoinOut from the 3rd Quarter of 2020 states a revenue of $6.5 Million.
CoinOut was purchased by Informed Resources Inc [IRI] in 2021. CoinOut is earned by charging a fee or service charge. They offer various deals and coupons and thus customers start visiting them, these days, even more often.
Utilizing an easy-to-use interface, the app scans around 3 Million receipts monthly.
In the year 2021, CoinOut made a huge revenue of 12$ Million. CoinOut obtained 4.7/5 and was among the top 100 IOS apps. Secondly, it has over 10 lakh installations on the Play Store, one of the most highly downloaded apps among the competitor apps.
Did CoinOut go out of Business?
CoinOut did not go out of business, contrary to popular belief. However, it made some changes to its business model that made it like a repacked product in the market.
Are there any other products like CoinOut in the market now?
CoinOut’s rivals on the market are numerous and include Cash Cow, Ampli, Cashback, Bee-One, e-Tasku, OmniReceipt, and others. However, the app is still growing and a well-known service provider in the industry despite having so many rivals.
What is CoinOut’s current evaluation?
CoinOut’s valuation, as mentioned previously, stood at $3.3 million at the time of Shark Tank. The current evaluation of the firm is not available in the public domain, but considering the extent of their work and revenue, it is expected to have increased significantly.
FAQS about CoinOut
What is CoinOut?
CoinOut is an app that allows users to convert their loose change into digital cash or gift cards.
Who is the founder of CoinOut?
Jeff Whitten is the founder of CoinOut, a Columbia Business School graduate.
Did CoinOut get a deal on Shark Tank?
No, the Sharks declined to invest in the app despite its potential.
What happened to CoinOut after Shark Tank?
The company received substantial funding, expanded its services, and was later acquired by Informed Resources Inc.
Is CoinOut still in business?
Yes, the app is still operational and has evolved into a successful cash-back app.
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