SumUp, a fintech that provides payments and related services to around 4 million small businesses in Europe, the Americas, and Australia, The company has raised expansion capital to help it traverse the stormy waters of the present fintech market, waters that have tipped and swayed SumUp itself.
The business, which is based in London but has roots in Germany, has raised €285 million (just under $307 million). The company SumUp intends to use the funds to continue organically growing its business by offering more financial services.
In addition to card readers and other point-of-sale technologies, it offers invoicing, loyalty, business accounts, and other services. It is also looking to expand beyond the 36 countries where it is now active.
It will also focus on inorganic growth, or mergers and acquisitions. The latter is worth noting, the company is currently in a buyer’s market. Furthermore, with fintech firms facing a substantially tighter funding landscape, with S&P reporting a 36% drop globally in the latest quarter.
This current round is led by Sixth Street Growth, with existing investors Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group also participating. According to PitchBook, SumUp has already raised around $1.5 billion.
Hermione McKee, SumUp’s new CFO, described the transaction as “mostly equity” but declined to provide more specific details. She also declined to provide a particular valuation for SumUp, other than to remark that it is greater than the $8.5 billion SumUp attained in 2022 when it raised €590 million (half of stock and half in debt).
According to the corporation, it has been “positive on an EBITDA basis since Q4 2022” (this is not the same as profitable). And that it has had “top line growth” of more than 30% year on year.
SumUp, now 11 years old and one of the largest privately held payments firms, is counting on its history as a proof of its stability.
“For over a decade, SumUp has consistently provided sustained growth and boldly explored and led entirely new product categories and markets,” said Nari Ansari, MD of Sixth Street Growth.
He furthermore continued saying, “This track record and culture of innovation combined with SumUp’s thoughtful approach to growth and efficiency are coordinated with Sixth Street Growth’s investing strategy.”
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