Brief Summary
Mo, Andrew, and Zack present Cupe, a fintech solution targeting the millennial market, aiming to revolutionize banking with personalized services and a focus on university students. They seek $380,000 for 8.4% equity, highlighting their existing marketplace app with 150,000 users and the rollout of a Qpay Mastercard. The sharks question their differentiation and revenue model, but ultimately, they secure a deal with Steve and Naomi, marking the first time the two investors have collaborated.
- Cupe aims to change banking for millennials with personalized financial services.
- They have 150,000 university students on their marketplace app.
- They project significant revenue growth and market penetration in the next three years.
- Steve and Naomi invest together for the first time ever.
Mo, Andrew, and Zack introduce Cupe, a fintech company focused on changing banking for millennials. They are seeking $380,000 for 8.4% equity in their business. They aim to address the issues of traditional banking, such as poor customer service, lack of innovation, and high fees, by building a bank that customers will love. Cupe plans to offer features like live push notifications for transactions and personalized financial services.
Cupe already has a marketplace app with over 150,000 university students, where they can buy and sell items on campus. They are rolling out the Qpay Mastercard, which will allow students to spend money both on and off campus, integrating it with the Qpay app to provide an enhanced banking experience. The card functions like a debit card, and they have already signed up 5,000 students in the two weeks since its release, with plans to deliver 3,000 cards in the next three weeks.
Cupe has already raised $620,000 for marketing and operations and is seeking an additional $380,000 to expand their business across Australia. They position themselves as disruptors in the banking industry, which they believe has lacked competition for a long time.
Zack is the CEO, and this is the second successful business he and Andrew have founded together. They started by building apps for others and then decided to create their own app, leading to the creation of Qpay. They believe banking is broken because most people rarely visit bank branches and are dissatisfied with the experience. Cupe aims to understand and cater to how students spend their money.
Cupe operates as a corporate authorized representative of an Australian Financial Services License holder, ensuring they comply with legal regulations. The founders emphasize their focus on a specific demographic as a key differentiator. They provide tailored benefits, such as notifications that help students manage their spending, distinguishing them from traditional banks. A survey revealed that many students avoid checking their bank accounts as a saving strategy.
Cupe generates revenue by taking a cut from each transaction and through affiliate relationships, such as selling merchandise on their platform. Last year, they processed $10 million in transactions in Australia, resulting in $220,000 in revenue. They experienced rapid growth in the first year but realized they were reaching saturation in Australia, leading them to expand to the UK, where they are growing 3.4 times faster.
Cupe aims to capture 50% of the student market in Australia within the next three years, projecting around 500,000 students transacting four to five times a month, with an average transaction amount of $92. This would result in approximately $190 million per month. They estimate they could generate $4 to $5 million in revenue per year with a 50% cash profit margin.
One shark offers $380,000 for the requested 8.4% equity. Another shark expresses interest but ultimately declines due to existing fintech investments. Steve makes an offer for the full amount at the original terms. Naomi also expresses interest, leading to a rare agreement where Steve and Naomi decide to split the investment, marking the first time they have ever worked together.
Cupe secures the deal with Steve and Naomi, who will each take a 50% share of the 8.4% equity for $380,000. The sharks commend the founders, expressing confidence in their future success and highlighting the significance of Steve and Naomi's collaboration.
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Transcript
Full transcript of “The Highest Earning Business in Shark Tank History? | Shark Tank AUS”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 mo andrew and zach have a business that cashes in on the millennial mindset one in eight university students are already using our product and it's something obviously the struct accord we're disrupting a very old industry and it's really exciting people want to see change and i think where that changed [Music] hello predators of the sea we're cupe and we're here to change banking for millennials we're here seeking 380 000 in exchange for 8.4
0:46 equity in our business sharks traditional banking as we know it has been old and has not changed for the past decade with poor customer service lack of innovation and generally high fees that people don't like to pay many people stay because there's no better option we're here to change that cuba will be a bank that you love we're going to build things from the ground up so things like live push notifications about transactions to personalized financial services rather than having loyalty cards for example will automatically apply discounts based on the things that they buy in the past we are already working with over 150 000 university students in our marketplace app where students can buy and sell things on campus
1:34 like textbooks tickets to events and merchandise one out of eight university students already has qpay and now we're rolling out the qpay mastercard which will allow students to spend their money on campus off campus and online putting that card together with the qpay app will be providing the banking experience that should have been will it be a credit card or a prepay card or both it acts like a debit card since we released the card two weeks ago 5 000 students have signed up and we're on our way to deliver 3 000 cards in the next three weeks so where do you come in well we've already raised six hundred and twenty thousand dollars for marketing and operations and we're seeking to raise a further three hundred and eighty thousand
2:22 dollars to help grow our business all over australia sharks the banking industry has been without competition since dinosaurs roamed the earth and now that's all about to change we are the asteroid that's coming in hot um thank you very much who are you uh i'm mo i am zeki i'm andrew so who's the boss uh zach and i are co-founders but zac is the ceo this is our second successful business that we founded together we started right out of uni building apps for other people and seeing them achieve their dreams we wanted to build an app for ourselves and that was the beginnings of qpa so why do you think biking's broken when was the last time you visited a bank
3:07 branch most people will tell you it's you know either they've never done it or they don't enjoy it so where we come in and certainly when we work with these students we have a very strong understanding about how they spend their money where they spend their money and what they actually want when they do spend that money can i just ask you a really fundamental question one of the things i love about my bank is they have a banking license and i know that i can trust them so you've got a banking license we're a corporate authorized representative of australian financial services license holder so while we're not a bank just yet the services that we provide at this stage certainly fit within the legal regulations within australia i'm struggling with your differentiation in the marketplace
3:53 i'm a customer of a major big four bank of course everything you've described i'm getting now from them so other than a really good marketing play please give us the lowdown on why this is such a great opportunity i think i'm missing out on something here i think uh the key strength that we have is our focus on the on the demographic that we're we're catering to so that's a marketing play that's a customer demographic play so they're sort of are they getting any better benefits of course if they bank with you absolutely so for example if you're a student and you really want to know whether or not you have enough money to go out on a thursday night um being notified with the location of every purchase that you've made so that you know you feel secure in that but what's
4:39 different from opening up an app on my phone i can see my bank balance straight away and i know exactly all my transactions am i missing something we did a survey before we did any of this for 2000 people university students our users and we asked them what's your how do you save money um the answer is 40 of them 43 actually came back and said that their saving strategy was i don't look at my bank account so what do you mean if i don't look at it i won't spend it they they i assume they just use their card until it stops working sounds like you surveyed my children the the bank of funniest you know it's not actually students it's actually people between the age of 18 to 25 that's our target demographic right one of the features that they were most excited about was just knowing for example at the end of every week we tell them here's how much you have to
5:24 spend in fund money and here's how much you have to spend you know in terms of real money so things like rent or textbooks et cetera the fact that we do that for them is i guess the the differentiator it's not just saying for example you know hey you've spent 500 this month on textbooks it's more like saying hey did you know you have a hundred dollars that you can spend on going out with friends and that difference i know it sounds subtle but from a millennial's perspective that's the difference between them looking at their bank account versus just hoping that they have that money so i just want to get to the bottom of your numbers now so we understand last year we did 10 million of transactions in australia so in terms of revenue the way we make money at the moment we take clip off every transaction and we have affiliate relationships um so for example we sell merchandise on our platform so people can buy things like hoodies beanies gowns et cetera
6:10 after 10 million dollars how much did you get um so last year we made 220 000 of revenue the year prior to that it was around 56 so we grew quite rapidly in the first year in the second year we kind of realized that you know we're getting as many societies as we can and so that's when we went to the uk so this year we anticipate that most of our growth in terms of actually existing revenue so why do you think the uk is going to be a bigger source of revenue so we we essentially started to run out of customers in australia and the uk is three times larger than australia yeah so 150k uni students said yeah is that right so it's 150 000 monthly active users um what what legend of the genius impression they should top the market um sorry i was referring to the student uh societies rather rather than the actual stuff so your marketing channel in the university
6:56 through the societies and clubs which is incidentally another piece about why this we think we can do this better than anyone it's a factory of i guess students every year because we have the society so you know the law societies of the biology societies when students first come to university they typically sign up for those so the committee says to the students please download the app and then we can yes you can buy for example that's your wage that's actually the thing you're wedging the door to get access to the students and then actually sell them further financial services and in the uk we're going around 3.4 times faster in not than australia you're growing three and a half times fast too where are we going to be in three years from now we think that we can probably get around 50 of the market of students in australia in the next three years yep which means which means is probably around 500 000
7:42 students which means which means that they would probably be transacting around four or five times every month and in terms of the average transaction amount you're probably talking about 92 dollars that's what it's been pretty solidly that's 190 million bucks a month it sounds about right holy that's amazing mo andrew and zack are taking on the banks with a high-tech play for the millennial market and there's big money in it that's 180 million bucks a month it sounds about right holy that's amazing keep going i'm starting to get excited realistically we definitely think we could be making four or five million of revenue a year um what sort of cash dropping at the bottom uh probably around fifty percent give or take
8:29 um be very high margin business yeah two million and climbing fast i hope so [Music] all right i'm in guys i'll take i'll take the lot for what you want um 380k for um 8.4 percent fantastic that's awesome [Music] with any of the other shows no bites from the other show you're actually really impressive there's there's i can't fault you but for this one i don't understand tech bells they just blow my head [Music] you've got a great offer i'm out awesome thanks thanks what are you thinking yeah look fabulous pitch guys you have all the answers you're very impressive young guys um i've got
9:15 three other fintech investments out there at the moment so for that reason i'm out thanks for everything i'm interested definitely interested 8.4 is not very exciting would have liked a bigger chunk but i mean you're impressive but i think on balance i'm just not compelled uh i wish you luck but i'm out thanks thank you well and there was one you just take mine and ignore her because you know i'm gonna make you an offer three hundred and eighty thousand
10:00 dollars for eight point four percent of your business which is what you asked for we definitely think that we need a female presence you know the more people the better steve and i never work together is that what you're asking you're asking for two sharks that would be that would be beneficial [Music] i'm not that greedy with this deal i'll take the lot or take a 50 part there of what you're asking for today [Laughter] i won't work with naomi but she can have half of my investment
10:45 we'll have separate board meetings if you need to be kept apart um guys must be very special because steve said he would never work with naomi this could be the first ever wait a minute i'm in this conversation i haven't agreed to it yet yeah but again for what it's worth we definitely value the relationship if you guys are really doing what you say you're going to do then um it's it's a believable story of which i'm buying i absolutely see this as a market that it you know is is our future and i wanted to be associated with that and that is the only reason i'm accepting to go halves with steve awesome yes nobody can drag along behind me that would be fantastic okay
11:33 good on you well so do we have a dude thanks so much cheers it is literally something we never thought would happen this steve and i are doing it i really think it's the first time first time ever it's awesome well done guys all right lads awesome thank you guys i think you did well we're going to read about those guys they're going to do well and the best part of it is to see you two working together it's amazing i'd like to see a big hug between you two that would be no you'd like to see it guess what
12:25 you're going to be disappointed buddy you
