Fintech SumUp secures €285 million in financing round

Fintech SumUp secures €285 million in financing round

Fintech SumUp has secured €285 million in a financing round led by Sixth Street Growth, alongside participation from Bain Capital Tech Opportunities, Fin Capital, and Liquidity Capital. This investment will fuel SumUp’s global expansion, helping small merchants access the tools and services essential for growing their businesses.

Since its start in 2012, SumUp has provided merchants with a range of tools like a free business account, the SumUp Card, online shop solutions, and payment options. They focus on integrating these seamlessly into their systems. Beyond business, SumUp donates 1% of its sales to environmental causes and supports education and entrepreneurship globally. In 2023, they earned recognition as a top global employer for inclusion in the Stonewall Workplace Equality Index.

Hermione McKee, CFO of SumUp, said in a statement:

“Our mission is to create a world where everyone can build a successful business. SumUp’s consistent growth over the past eleven years is a direct result of the success of the traders we serve and would not be possible without the unwavering trust and support of the investor community. We are pleased that Sixth Street is now part of this community. This funding gives us additional ability to pursue growth opportunities and accelerate product developments that support small businesses.”

SumUp has seen a strong year with rising momentum. Their positive EBITDA since late 2022, combined with over 30% revenue growth, shows progress. They’ve expanded to Australia, their 36th market, and built key partnerships. The recent funding round boosted their valuation, surpassing the $8.5 billion mark in 2022. However, despite these positives, there have been challenges for SumUp. The customer base has remained stagnant at 4 million for the past two years. Additionally, recent secondary transactions by Groupon valued SumUp at $4.1 billion, signaling a decrease from its 2022 valuation of $8.5 billion. This fluctuation in valuations reflects the difficulty the company has faced in securing significant equity rounds.

Nari Ansari, Managing Director at Sixth Street Growth, commented:

“For more than a decade, SumUp has achieved sustained growth and boldly expanded into entirely new product categories and markets. This remarkable track record and culture of innovation, combined with SumUp’s approach to growth and efficiency, fit well with Sixth Street Growth’s investment strategy. The way people do business today is constantly changing, and SumUp is always alongside its merchants to give them exactly the tools to make it easier for them to get paid for what they love . We look forward to working with the SumUp team to support them in this next phase of growth.”

About The Author

Gia Butt

Gia is an incoming university student at LUMS. She has a passion for all things literature, fashion, and content creation.

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