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SumUp, a Block rival, secures $307 million amidst fintech funding downturn.

ByYasmeeta Oon

Dec 12, 2023

SumUp, the British payments startup renowned for its compact card readers, announced on Monday that it has successfully raised 285 million euros ($306.6 million) in a substantial funding round. This funding has propelled the company’s valuation to over $8.6 billion.

Leading the investment in SumUp was Sixth Street Growth, the growth-oriented arm of the global investment firm Sixth Street. Notably, existing investors like Bain Capital Tech Opportunities, fintech investment firm Fin Capital, and debt financing firm Liquidity Group also participated in this latest round. The majority of the funding came in the form of equity, with a smaller portion raised through debt.

Hermione McKee, SumUp’s Chief Financial Officer, expressed that this fresh infusion of capital equips the company with the means to seize emerging opportunities over the next two years. She cited SumUp’s recent expansion into Australia as an example, making it their 36th global market. Furthermore, SumUp is eyeing potential growth in Latin America, Asia, and Africa, constantly assessing whether to pursue acquisitions or build new ventures.

With this funding round, SumUp aims to further enhance its valuation, building on the 8 billion euros ($8.6 billion) valuation it achieved in the summer of 2022 during a funding round that raised an impressive 590 million euros for growth and global expansion. This latest funding round is considered an “up round,” indicating a higher valuation than before.

This achievement is particularly significant in the context of the challenging European technology investment landscape, which has seen valuations decrease due to factors like rising interest rates and macroeconomic challenges.

SumUp has been diversifying its business, including venturing into lending. The company introduced a service allowing merchants to apply for cash advances or business loans based on their card sales revenues. To support this, SumUp secured a $100 million credit facility from Victory Park Capital. According to McKee, the lending product has been successful, with the majority of merchants repaying promptly.

SumUp has also introduced new point-of-sale offerings, such as self-service kiosks and enhanced point-of-sale systems.

Looking ahead, SumUp intends to explore merger and acquisition opportunities to drive its expansion in international markets. McKee emphasized that M&A is a viable option and that the company has experience both in building ecosystems and acquiring existing ones.

SumUp currently has no immediate plans to go public, as it has ample access to capital within private markets. The company is focused on improving its processes and ensuring that it meets the standards required for public markets but does not have an imminent IPO on the horizon.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.