SumUp, a London-based fintech startup with over 4 million small businesses worldwide, has raised $620 million (€590 million) in funding. The financing, which is a combination of debt and equity, pushes the company’s valuation to $8.4 billion (€8 billion), a big drop from its €20 billion valuation earlier this year.
SumUp will use the new capital injection to “continue to build out our product ecosystem, expand into new markets, pursue value-adding acquisitions, and continue leveling the playing field for small merchants at a global scale,” SumUp CFO said in a statement.
The round was led by Bain Capital Tech Opportunities, with participation from funds managed by BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, and Sentinel Dome Partners, among others. This round brings SumUp’s total capital raised to €1.5 billion.
Founded in 2011 by Stefan Jeschonnek, Dr. Jan Deepen, Daniel Klein and Marc-Alexander Christ, SumUp enables businesses to accept card payments at the Point-of-Sale or on the go. SumUp is used by more than 4 million businesses including taxi drivers, coffee shop owners., and large sports stadiums.
SumUp’s financial services Super App also provides merchants with a free business account and card, an online store, and an invoicing solution, as well as in-person and remote payments seamlessly integrated with SumUp’s proprietary card terminals and point-of-sale registers.
SumUp’s team of over 3,000 people supports merchants in 35 countries worldwide, with Peru (launched in June 2022) being the company’s most recent new market. In recent years, SumUp has also expanded into point-of-sale solutions, and with the acquisitions of Goodtill, Tiller, and Fivestars, the company is rapidly expanding its footprint within the restaurant and retail sectors.
Commenting on the funding, SumUp co-founder and CFO Marc-Alexander Christ said: “SumUp has received consistent support from the global investment community in our mission to help small merchants succeed. We stand by our merchants whatever the circumstance ‒ whether that be COVID or macroeconomic uncertainty. Our ability to organically grow 60+% through the challenges of recent years shows that we are there for merchants when they need support most.”
Marc-Alexander Christ added, “I am very proud of the team for completing a successful financing round in the current market with marquee investors – it’s indicative of our strength, execution, and potential. The funds we’ve raised will enable us to continue to build out our product ecosystem, expand into new markets, pursue value-adding acquisitions, and continue leveling the playing field for small merchants at a global scale.”
Darren Abrahamson, a Managing Director at Bain Capital Tech Opportunities, added: “SumUp has continually evolved to empower a growing and diverse field of small businesses with payment solutions and tools to efficiently connect with their everyday consumers. SumUp’s leadership team have led the company to sustained and accelerated growth through expansion to more than 30 countries where they have had a direct and positive impact on the small business ecosystem. We’re proud to contribute our deep fintech and payments experience to aid SumUp’s remarkable ability to push the boundaries and lead an incredibly competitive industry.”