SumUp, a British fintech company specializing in payment services, announced on Monday that it has raised another €285 million to accelerate its global expansion in an increasingly challenging environment for tech startups.
The round, which closed on Friday, was "led by (U.S.) Sixth Street Growth with participation from Bain Capital Tech Opportunities, Fin Capital and Liquidity Group", SumUp said in a statement on Monday. The company did not elaborate on its new valuation. It was raised to €8 billion after a previous funding round in June 2022, but the value of tech startups has plummeted recently amid the gloomy economic climate.
In October, Groupon, which specializes in online bargains, announced it was selling "9.4% of its 2.3% stake in SumUp" for €8.4 million, halving its valuation to €3.9 billion.
SumUp did not comment on the figures, telling AFP only that the company "continues to grow based on the valuation reached in the summer of 2022".
In a statement, the startup said it has been EBITDA positive since the fourth quarter of 2022, "with revenue growth of more than 30% for the year" and that it is "steadily increasing EBITDA margins through 2023".
SumUp, founded in 2012 and based in London, makes small mobile bank card readers aimed at retailers, artisans and microbusinesses, among others. It also develops a financial services application that includes a business account and card, an online store, an invoicing solution, and physical and remote payments.
The company is present in 36 countries, including France, Germany, the US, Brazil and, most recently, Australia, and boasts more than 4 million business customers. SumUp raised €590 million in its previous funding round in June 2022 - at the time, the company said the total amount raised since its inception had reached €1.5 billion.
Overall, SumUp's fundraising is a positive signal for the market. It means that large investors still see potential in this company and in the payment services sector as a whole.
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