British fintech giant SumUp has successfully raised €285 million (£244 million) to fuel its global expansion plans. The London-headquartered company, known for providing a comprehensive suite of tools for merchants, including business accounts, online stores, invoicing, and point-of-sale registers, has set its sights on new markets after recently launching in Australia, its 36th market this year.
The impressive funding round, led by Sixth Street Growth, comes at the tail end of a turbulent year for tech funding. With UK tech firms projected to experience a 54% year-on-year drop, SumUp’s ability to secure significant investment underscores the company’s resilience and investor confidence in its mission.
SumUp’s mission, as articulated by CFO Hermione McKee, is to create a world where everyone can build a thriving business. The company’s growth over the past eleven years reflects its commitment to empowering merchants, offering them a range of financial tools to streamline their operations.
The fresh funding injection is earmarked for expanding SumUp’s global footprint, building on its recent entry into the Australian market. With plans to venture into additional markets, SumUp is strategically positioning itself as a key player in the fintech space, providing essential tools for businesses worldwide.
Sixth Street Growth spearheaded the funding round, with notable participation from Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group. The diversity of investors underscores SumUp’s broad appeal and strong value proposition in the fintech sector.
Financial Details and Resilience
While the fintech company did not disclose the breakdown between equity and debt in this funding round, it brings SumUp’s total funding to over €1.79 billion since its establishment in 2012. Having raised €590 million in June this year at an enterprise valuation of €8 billion, SumUp has demonstrated a successful combination of equity and debt financing strategies.
A noteworthy point is SumUp’s positive performance on an EBITDA basis since Q4 2022. This financial milestone further strengthens the company’s position and showcases its ability to achieve sustainable growth.
SumUp’s journey includes a significant milestone in June 2022, where it raised €590 million. Additionally, the acquisition of Lithuanian fintech Paysolut last year aimed at enhancing banking solutions and expanding SumUp’s international reach.
SumUp’s successful funding round not only highlights the company’s resilience but also signals a vote of confidence from investors in its long-term vision. As the company continues to empower businesses globally, the fintech giant is poised for a dynamic and prosperous future.