London fintech SumUp adds €590 million to the war chest

London-based payments firm SumUp has raised €590 million in its latest funding round, at a valuation of €8 billion. The round, which involved, "about a 50/50 split of debt and equity," according to Tech.eu sources, brings the total amount of capital raised by SumUp to €1.5 billion. The new money will enable the startup to continue to build out its product ecosystem, expand into new markets, and pursue value-adding acquisitions.

The investment was led by Bain Capital Tech Opportunities, with participation from funds managed by BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, and Sentinel Dome Partners.

With US-based Block’s Square and PayPal’s Zettle among competitors, the startup is operational in 35 countries and is now being used by over 4 million SMBs, the company said.

Founded in 2012 to help small merchants start, run and grow their business through a fair, easy, and reliable payment solution, the financial services super app offers merchants with a free business account and card, an online store, and an invoicing solution.

Talking about the new cash infusion, SumUp co-founder and CFO Marc-Alexander Christ said: “We stand by our merchants whatever the circumstance ‒ whether that be COVID or macroeconomic uncertainty. Our ability to organically grow 60+% through the challenges of recent years shows that we are there for merchants when they need support most. The funds we’ve raised will enable us to continue to build out our product ecosystem, expand into new markets, pursue value-adding acquisitions, and continue leveling the playing field for small merchants at a global scale.”

The company expanded its operations to Peru in June 2022. In recent years, it has also expanded into point-of-sale solutions, and with the acquisitions of Goodtill, Tiller, and Fivestars, the company is rapidly expanding its footprint within the restaurant and retail sectors.

Darren Abrahamson, managing director at Bain Capital Tech Opportunities, added: “SumUp has continually evolved to empower a growing and diverse field of small businesses with payment solutions and tools to efficiently connect with their everyday consumers. SumUp’s leadership team have led the company to sustained and accelerated growth through expansion to more than 30 countries where they have had a direct and positive impact on the small business ecosystem.”