SumUp Startup Secures €285 Million Amid European Fintech Challenges, Shines as Beacon of Resilience in UK Landscape
Fintech firms in Europe have found fundraising difficult in 2023; in H1, capital raised decreased by 70% when compared to the same time in 2022. Despite this, British payment company SumUp has nevertheless raised €285 million to broaden its reach internationally.
The goal of SumUp’s 2012 UK founding was to level the playing field for small enterprises. Along with remote and in-person payments integrated with the firm’s card terminal and point-of-sale registers, it offers merchants an online store, a free business account, and an invoicing solution through its SuperApp.
Three new services were recently launched by the startup: SumUp One, a membership subscription that bundles the company’s best-selling features for a predetermined, reduced fee; Tap to Pay on iPhone in France, the Netherlands, and the UK; and a cash advance relationship with VPC in the UK.
Currently, SumUp collaborates with more than four million small enterprises in 36 regions worldwide. The recent cash infusion comes after a 30% yearly rise.
“The consistent growth SumUp has shown over the past eleven years is a direct result of the success of the merchants we serve, and it would not be possible without the unwavering trust and support of the investor community,” said the company’s CFO Hermione McKee. “This funding gives us additional firepower to pursue growth opportunities and accelerate products that empower small businesses.”
Sixth Street Growth spearheaded the investment round, with support from Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group.
“[SumUp] has recently impressed us as investors with the successful pursuit of delivering both profitability and growth,” added Darren Abrahamson, Managing Director at Bain Capital Tech Opportunities. “We continue to be very optimistic for SumUp’s future and are therefore continuing to re-invest.”
The company’s example provides additional evidence that the UK, a well-known fintech hotspot, is demonstrating greater resilience in the midst of Europe’s funding recession for the industry.