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SumUp — the fintech that provides payments and related services to some 4 million modest businesses in Europe , the Americas and Australia — has picked up some growth funding to navigate the jerky waters of the current fintech market , waters that have tipped and swayed SumUp itself .
The startup , which has theme in Germany but is based in London , has raise € 285 million ( just under $ 307 million ) . It design to utilise the money to continue growing its business organically , launch more financial services around the identity card readers and other point - of - sale tools — it currently offers invoicing , loyalty , business accounts and more . It ’s also eye up more geographics beyond the 36 where it is presently alive .
And it will also be wrench its attention to inorganic growth — that is , M&A. The latter is something to take in : We are currently in a vendee ’s securities industry , with fintech startup facing a importantly tight financial backing landscape , down by 36 % globally in the last twenty-five percent , according to S&P.
( Sometimes an M&A deal might check a couple of strategic boxes : When SumUp acquired the dedication startupFivestars in 2021 , that give it a branch up in the U.S. and also stick in raw overhaul to the platform . )
Sixth Street Growth is leading this latest round , with old backers Bain Capital Tech Opportunities , Fin Capital and Liquidity Group also participating . SumUp has now parent around $ 1.5 billion , perPitchBook data .
Hermione McKee , who was constitute as SumUp ’s CFO in the beginning this year , described the round as “ mostly equity ” but declined to give more accurate figures . She also refuse to give a specific valuation for SumUp , except to say that it ’s high-pitched than the$8.5 billionthat SumUp reached in 2022 when it raised € 590 million ( one-half in fairness ; one-half in debt ) .
The company articulate that it has been “ positive on an EBITDA basis since Q4 2022 ” ( note : this is not the same as profitable ) . And that it has had over 30 % “ top line emergence ” yr on twelvemonth .
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But on the other hand , there are other indication that business is tough mighty now . SumUp says that its customer base currently totals around 4 million , which is exactly the same pattern it quoted two years ago .
And today ’s financing news come in the wake of some other bouldery datum point for the company . It was only a yoke of months ago that Groupon disclosed that , as part of a magnanimous group of secondary proceedings between existing shareholder , itsold part of its stakes in the companyat a valuation of $ 4.1 billion . In other word of honor , it made the sales agreement at less than half what the troupe was worth in 2022 .
That $ 8.5 billion evaluation from 2022 , meanwhile , was a major discount on the € 20 billion ( $ 21.5 billion ) SumUp had been hop to achieve , underscoring how voiceless it has been to fire big fairness rounds . ( And in contrast with that , SumUp ’s last raise , in August , was for a$100 million acknowledgment facility . )
Payment tech business in Europe and the U.S. also faced some ruffianly scrutiny and slower stage business .
PayPal and Square , two publicly listed U.S. companies that vie directly with SumUp , have see their share price and market crownwork tank since 2022 . ( PayPal ’s parcel price is currently less than $ 60 / share , down from a peak of closely $ 300 / share . Square and parent company Block are trade at around 25 % of its peak . ) Stripe famously go out its valuation well-nigh halved to$50 billionthis year .
Closer to plate , publicly listed Adyen has also been in the fiscal doldrums after report sluggish growth . But as a measure of how volatile the marketplace is the right way now , and how hungry investor are for any mansion of good newsworthiness , Adyen ’s bare statement of a turnaround time plan ( plan , not results ) sent the company ’s stockup 30 % .
Klarna and Checkout have , so far , not been so lucky : Klarna ’s valuationdropped some 85%the last time it enhance money ; Checkout had a$40 billion valuationwhen it arouse $ 1 billion in January 2022 , but since then it ’s reportedly marked down that figure to$10 billioninternally .
Now 11 years former and one of the self-aggrandising of the in camera held requital startup , SumUp is banking on its track record of seniority as a signal of its stability .
“ For over a decade , SumUp has consistently delivered free burning increase and boldly entered and led entirely new product category and securities industry , ” said Nari Ansari , MD at Sixth Street Growth in a statement . “ This … track record and finish of innovation combined with SumUp ’s thoughtful approach to increment and efficiency are well - align with Sixth Street Growth ’s investment strategy . ”
