London-based SumUp, a fintech company, announced on Monday that it has secured €285M in a fresh round of funding at a valuation of above $8.6B (nearly €8B).
The latest funding injection was spearheaded by Sixth Street Growth, with participation from existing investors, including Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group.
The round predominantly consisted of equity, though a small portion of the funds was raised as debt, reports CNBC.
SumUp CFO Hermione McKee, who was appointed as SumUp’s CFO earlier this year, says, “I couldn’t be prouder of our team and what this means for our company’s future and our vision to create a world where everyone can build a thriving business. Since joining as Global CFO of SumUp, I’ve had a front-row seat to the remarkable growth and innovation that have driven us to this point, and it would not be possible without the unwavering trust and support of the investor community.”
“This funding round is not just about numbers; it’s about the impact we can create. It’s about supporting the dreams and aspirations of countless merchants who rely on SumUp to simplify their payments and grow their businesses,” continues McKee.
The London-based company plans to use the funds to accelerate its business growth organically, launch more financial services, and plan for international expansion beyond its current 36 markets.
“This funding gives us additional firepower to pursue growth opportunities and accelerate products that empower small businesses,” adds McKee.
The announcement comes a few months after it entered into a $100M (approximately €91M) credit facility with Victory Park Capital, an alternative investment firm that specialises in private credit.
The credit facility will enable SumUp to provide advance payments to UK merchants. The company also has plans to expand this service to other European markets in the foreseeable future.
SumUp: Help businesses accept card payments
SumUp was founded in 2012 by Jan Deepen, Marc-Alexander Christ, Petter Made, and Stefan Jeschonnek. The company helps businesses accept card payments at the point of sale or on the go.
Since its inception, SumUp says it has become the financial partner for over 4 million small businesses worldwide.
The financial services super app from SumUp helps merchants with a free business account and card, an online store, an invoicing solution, and in-person and remote payments.
SumUp does this by seamlessly integrating these solutions into its proprietary card terminals and point-of-sale registers.
The company has broadened its range of products and services catering to small merchants.
This expansion includes a cash advance collaboration with VPC in the UK, the introduction of Tap to Pay on iPhone in the UK, France, and the Netherlands, and the introduction of SumUp One—a membership plan that consolidates its popular features at a single, discounted rate.
SumUp plans to explore more merger and acquisition opportunities to drive its expansion abroad.
“M&A is always something that’s on the table,” McKee says to CNBC.
“We have expanded into new geographies in the past with M&A. That’s something we’re always assessing. We have experience in both building an ecosystem as well as buying. And both of these things are available to us, obviously, yes, this just gives us greater optionality and the ability to move quickly, should we see the right opportunity arise,” he adds.
The company has reported positive EBITDA since Q4 2022 and over 30 per cent YoY growth in revenue, reports TechCrunch. The report also points out that SumUp’s customer base has remained static for the past two years with 4M, which suggests some internal challenges.