UK fintech SumUP raises €285 million in a recent funding round
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
SumUp, a London-based fintech, recently concluded a very successful funding round that ended up raising a total of €285 million. The company intends to use the funds to expand its global footprint, as well as increase the number of available financial services and products for its four million customers.
SumUp sees great success in 2023
The round was led by Sixth Street Growth, although it also saw participation from a number of other major entities. Some of the largest participants included Fin Capital, Bain Capital Tech Opportunities, and Liquidity Capital.
The new growth funding comes in the wake of the receipt in August of a $100 million credit facility from Victory Park Capital. The funds were meant to enable the rollout of a cash advance product, which the company intended to offer to merchants in the UK, as well as other regions of Europe.
The funds raised during this latest funding round came as a combination of debt and equity. However, SumUp has decided not to elaborate on the exact ratio between the two. Even so, the company is believed to have retained its valuation from June 2022, when its worth was estimated to be at around €8 billion.
The funds also came after SumUp saw a highly successful year, during which it constantly saw an increase in momentum. This allowed it to achieve positive EBITDA between Q4 2022 and now. At the same time, the company saw a revenue growth of more than 30% on a year-over-year (YoY) basis.
SumUp is pleased with the round’s success but still faces challenges
Its CFO, Hermione McKee, commented on the company’s progress over the last few years. She said that SumUp saw consistent growth in the last eleven years, which is a direct result of the success of the traders that the company serves.
McKee noted that the firm’s own success would not be possible if not for the unwavering support and trust of the investor community. In addition, McKee said that SumUp is very pleased that Sixth Street Growth has decided to join this community and become one of the company’s biggest supporters.
She also commented on the funding itself, which will grant the firm the ability to pursue growth opportunities. SumUp will also use the money to speed up product developments that support small businesses, which make up the majority of its clients.
Despite the firm’s success, however, there have been signs that business is rather tough right now. SumUp reported that its user base consists of 4 million small businesses, which is the same figure that the company reported two years earlier, suggesting that the number of clients has barely changed during this time.
