London-based fintech SumUp (website), a rising star in the payments industry, has recently secured a significant financial boost. The company successfully raised €285 million in a round led by Sixth Street Growth and Bain Capital Tech Opportunities. This funding round not only injects fresh capital into SumUp but also elevates its valuation above the €8 billion mark achieved in the summer of 2022. It seems as if the fintech hype is back again!
Hermione McKee, the CFO of SumUp, a paytech known for its small card readers, emphasized that this new capital injection provides the company with “more firepower to act on opportunities,” signaling an ambitious phase of acquisitions and geographic expansion. Following its launch in Australia, marking its 36th global market, SumUp is eyeing further expansion in Latin America, Asia, and Africa.
The latest investment round, predominantly equity-based with a minor debt component, reflects investor confidence in SumUp’s growth trajectory. It’s particularly noteworthy in the current European tech valuation landscape, which has seen a downturn due to macroeconomic pressures and investor caution.
Despite the challenges, SumUp has maintained its momentum, competing effectively with giants like Jack Dorsey‘s Block (formerly Square), PayPal‘s iZettle, and others. The company has diversified its offerings, venturing into lending services and securing a $100 million credit facility from Victory Park Capital to support its cash advance product. McKee reports positive trends in merchant repayments, indicating the success of this initiative.
Learn more about SumUp on PayRate42.
Looking ahead, SumUp plans to leverage mergers and acquisitions for further expansion. McKee notes that while the company is seasoned in both ecosystem building and acquisitions, it currently has no immediate plans for an IPO, given their robust access to private capital markets.
SumUp‘s latest funding round and strategic directions not only underscore its resilience in a challenging market but also highlight its potential for further growth and innovation in the global payments sector. It looks like both the crypto market and the FinTech segment have woken up from the hibernation they have been in since spring 2022.
