Currently, SumUp provides a range of products including card readers, invoicing, loyalty programs, and business accounts. With this new funding injection, SumUp aims to grow organically and explore expansion into new geographical markets beyond the 36 countries where it currently operates.

In addition to organic growth, SumUp is also focusing on inorganic growth strategies such as mergers and acquisitions. This approach is particularly relevant in the current market, where fintech startups are facing a more challenging funding environment. Recent S&P data indicates a global decrease of 36% in fintech funding over the last quarter.

SumUp’s strategic move into the US market was bolstered by its acquisition of Fivestars, a loyalty startup, in 2021. This expansion not only increased its geographical footprint but also diversified its service offerings.

Hermione McKee

Hermione McKee, SumUp’s recently-appointed CFO, stated that the recent funding is primarily equity-based, though exact financial figures were not disclosed.

She confirmed that the company’s valuation is now higher than its 2022 valuation of US$8.5 billion, achieved during a funding round that raised €590 million.

Despite a positive EBITDA since the fourth quarter of 2022 and over 30% growth in its top line year-on-year, SumUp faces challenges in a competitive market. The company’s customer base has remained static at around 4 million for the past two years. Moreover, recent market shifts were highlighted by Groupon’s sale of part of its stake in SumUp at a valuation of US$4.1 billion, less than half of its 2022 valuation.

SumUp’s current scenario reflects the broader trends in the fintech industry, where companies like PayPal and Square have also seen fluctuations in their share prices and market caps since 2022. As SumUp celebrates its 11th year of operations, the company’s longevity in the market is seen as a key factor in its continued stability and growth prospects, drawing attention from investors including Sixth Street Growth.