SumUp, a British payments startup, has obtained 285 million euros ($306.6 million) in a fundraising backed by Sixth Street Growth and Bain Capital Tech Opportunities. Hermione McKee, the company's Chief Financial Officer, claimed that the newly-acquired funds offer SumUp "more strength to take advantage of prospects" like acquisitions and the creation of new markets. Confirming that it is now worth more than when it raised 590 million euros ($635.3 million) at a valuation of 8 billion euros ($8.6 billion) in summer 2022, SumUp confirmed the news.
SumUp, a British payments startup known for its small card readers, has successfully raised 285 million euros ($306.6 million) in a new funding round, valuing the company at over $8.6 billion. This round was led by Sixth Street Growth, the growth arm of global investment firm Sixth Street, with participation from existing investor Bain Capital Tech Opportunities, fintech investment firm Fin Capital, and debt financing firm Liquidity Group. Most of the capital raised was in the form of equity, with a small portion as debt.
The new capital, according to SumUp's Chief Financial Officer Hermione McKee, gives the company "more firepower to act on opportunities that we see arising over the course of the next two years". She also mentioned the company's plans to expand into Australia, Latin America, Asia, and Africa.
This round serves to build upon SumUp's valuation attained in summer 2022, when it raised 590 million euros and was valued at 8 billion euros ($8.6 billion). In spite of the rocky year for European technology valuations, which have seen median valuations decline across all stages according to venture data firm PitchBook, this round is an "up round" meaning SumUp's valuation is higher than it was previously.
Earlier this year, shareholders in SumUp sold their interests in the firm at a significantly reduced cost compared to its last official valuation. In a filing to the United States Securities and Exchange Commission, Groupon, an online coupon website, stated that the sale of its stocks in SumUp had valued the company at a mere 3.9 billion euros ($4.2 billion).
SumUp, which is in direct competition with Jack Dorsey's Block (formerly known as Square), PayPal's iZettle, FIS' WorldPay, Stripe, and Adyen, has broadened its operations lately, including a loan service. This summer, the company was supplied with $100 million from Victory Park Capital to back its cash advance system. According to McKee, the majority of those who went for the loan are paying it back in a timely manner. Furthermore, SumUp has also rolled out some new point-of-sale systems, such as self-service kiosks and a Tap to Pay feature in the U.K. and the Netherlands. In the future, SumUp may explore merger and acquisition possibilities for further growth but is not considering an IPO, as it has access to plenty of capital in the private market.
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