Global FinTech company SumUp has secured an investment of €590 million ($624 million) in the latest funding round. After this round of funding, the London-based company found that 10 years is now worth $8.5 billion in valuation.
The funding round attracted investments from major investment and tech corporations such as Bain Capital Tech Opportunities, btov Partners, Fin Capital and Sentinel Dome Partners to name a few. Funds managed by world-renowned BlackRock, Inc. also participated in the investments.
Investment is reportedly in the form of 50% debt and 50% equity.
The company said in a press release that the funds raised from this round will be used to ‘ accelerate development of vital and fair financial services and tools to empower small businesses all over the world.’
As of now, more than 4 million businesses across the world, of various sizes and models, are using products and services developed by SumUp. SumUp provides these businesses with business accounts, cards, an online store, invoicing and in-person and remote payments to name a few.
Co-Founder and CFO of SumUp Marc-Alexander Christ said in the press release that the funds raised by the company will enable SumUp to develop newer product ecosystems. According to Mr Christ, it will also help the company to make crucial acquisitions and thus expand into newer markets across the world.
SumUp’s latest entry into a new market was in this month when it started operations in Peru. The majority of SumUp’s revenue and the market share continue to be from Europe,
Christ also added that even during pandemic years, the company was able to grow almost 60% organically. This growth even during trying times shows that the company will be there for the merchants when they need the most support.
Darren Abrahamson, a Managing Director at Bain Capital Tech Opportunities, one of the investors in the funding round, said that they are proud to continue Bain Capitals’ experience in fintech and payments to SumUp.
He added that it will help SumUp “to push the boundaries and lead an incredibly competitive industry.”
Since its inception, SumUp has raised over €1.5 billion, including €750 million as debt last year.
SumUp said in the statement that Goldman Sachs International acted as a placement agent for SumUp. American International Law Firm, Weil, Gotshal & Manges LLP acted as legal advisors on this funding round.
About SumUp –
The multinational FinTech company was founded in 2012 by Marc-Alexander Christ. Initial investors were Goldman Sachs, Oaktree Capital Management and American Express to name a few.
In 2021, the company acquired a customer loyalty startup named Fivestars based in California for $317 million.