SumUp Secures €285M for Growth Amid Fintech Instability

Photo by Alexander Grey on Unsplash

SumUp, a globally recognized fintech firm, has successfully raised €285M, approximately $307M, to spur its business growth. The London-based company with German roots is on a mission to thrive in the ever-turbulent fintech industry.

Securing Growth Funding

In the face of the unpredictable fintech landscape, SumUp has managed to secure a substantial growth funding of €285M. This investment will drive the firm’s organic growth, allowing it to offer further financial services related to their existing product lineup, which includes card readers and other point-of-sale tools. SumUp is currently offering invoicing, loyalty programs, and business accounts, among other services.

The firm also plans to broaden its geographical reach beyond the 36 countries in which it currently operates.

“SumUp has consistently delivered sustained growth and boldly entered and led entirely new product categories and markets,” – Nari Ansari, MD at Sixth Street Growth

Aiming for Inorganic Growth

While focusing on organic growth, SumUp is also planning to explore inorganic growth opportunities, primarily through mergers and acquisitions (M&A). This strategic move comes at a time when the fintech industry is witnessing a significantly tighter funding landscape, with global fintech funding dropping by 36% in the last quarter.

SumUp’s successful acquisition of the loyalty startup, Fivestars, in 2021, is an example of how M&A can provide a boost in new markets and introduce new services to the platform.

Funding Details and Valuation

The funding round was led by Sixth Street Growth, with contributions from previous backers such as Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group. This funding has increased SumUp’s total capital raised to around $1.5 billion.

Hermione McKee, SumUp’s CFO, confirmed that the recent funding round was “mostly equity”, although the exact figures were not disclosed. She also did not reveal a specific valuation for SumUp, but hinted that it exceeded the $8.5 billion mark reached in 2022.

SumUp’s Performance

The company has been positive on an EBITDA basis since Q4 2022, experiencing over 30% “top line growth” year on year. Despite this promising growth, there are signs that the business environment remains challenging. For instance, SumUp’s customer base has remained steady at 4 million for the past two years.

Comparisons with Other Fintech Firms

SumUp’s journey is not isolated. Other significant players in the payment tech industry, both in Europe and the U.S., have also faced scrutiny and slower business growth. PayPal and Square, two direct competitors, have seen their share prices and market caps drop significantly since 2022. Stripe’s valuation was nearly cut in half to $50 billion this year.

The Fintech Landscape

The fintech industry is currently experiencing a storm of challenges. Klarna and Checkout, for instance, have seen their valuations drop drastically. Klarna’s valuation fell by 85% during its last funding round, and Checkout’s valuation, which stood at $40 billion in January 2022, has reportedly been internally marked down to $10 billion.

Despite these turbulent times, SumUp remains optimistic, banking on its decade-long track record of resilience as a testament to its stability.


In the midst of the fintech storm, SumUp’s successful fundraising signifies a beacon of resilience. The firm’s persistent growth, innovative approach, and strategic decisions have proven instrumental in navigating these challenging times. With its sights set on both organic and inorganic growth, SumUp is poised to continue its trajectory in the dynamic fintech landscape.


Leave a Reply

Your email address will not be published. Required fields are marked *