SumUp raises €285m in funding to fuel growth
The up round will give the fintech “additional firepower to pursue growth opportunities”
Payments startup SumUp has secured €285m in a funding round that pushes its valuation over €8bn.
The German fintech, now based in London, is best known for its card readers and payment terminals, and now serves more than four million businesses worldwide with financial services and payments products.
The funding round was led by Sixth Street Growth, with participation from Bain Capital Technology, Fin Capital and debt financing firm Liquidity Group.
SumUp, which recently expanded to its 36th market when it launched in Australia, said the funding will be used to expand its global footprint, providing small merchants with tools and servants to “start, run and grow” their businesses.
“Our mission is to create a world where everyone can build a thriving business,” SumUp CFO Hermione McKee said.
“The consistent growth SumUp has shown over the past eleven years is a direct result of the success of the merchants we serve, and it would not be possible without the unwavering trust and support of the investor community.”
McKee said the funding “gives us additional firepower to pursue growth opportunities and accelerate products that empower small businesses”.
The fintech has recently grown its suite of products and services for small businesses with tap to pay on iPhones in the UK, France and the Netherlands, a new cash advance product and SumUp One, a membership plan bundling its most popular features.
“For over a decade, SumUp has consistently delivered sustained growth and boldly entered and led entirely new product categories and markets,” Sixth Street Growth managing director Nari Ansari said.
“This remarkable track record and culture of innovation combined with SumUp’s thoughtful approach to growth and efficiency are well-aligned with Sixth Street Growth’s investing strategy.
The company said it “continues to build further” on the valuation it achieved in the summer of 2022 which saw it valued at €8bn ($8.6bn) when it raised €590m of capital for growth.
SumUp has been operating on a positive EBITDA basis since the fourth quarter of 2022, maintaining over 30 per cent “top-line growth” year over year and said it continuously grew its EBITDA margins over the course of 2023.