London-based fintech startup SumUp raises $895M in funding from Goldman Sachs, Temasek, Bain Capital Credit, others
SumUp, a London, England-based fintech startup and global payments service provider, has raised $895 million (€750 million) facility from Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and funds managed by Oaktree Capital Management, L.P.
SumUp will use the funding proceeds to accelerate growth and continue to acquire and support its existing merchants in 33 markets across the world. The new funds will also be used to continue expanding SumUp’s product suite, both organically and through further acquisitions (M&A), as well as for refinancing existing debt facilities.
Founded in 2011 by Daniel Klein, Jan Deepen, Marc-Alexander Christ, Petter Made, and Stefan Jeschonnek, SumUp allows businesses of all sizes to receive payments quickly and simply, both in-store and online. It was recently named as Europe’s fastest-growing company in the ‘Inc. 5000.’
The startup currently supports over 3 million merchants globally and – with its card terminals and online services relied upon by businesses from DHL to black cab drivers – SumUp is the go-to partner for small businesses from every walk of life. In October 2018, SumUp released its 3G reader, a card terminal that lets merchants process payments without the need for a mobile app or constant Wi-Fi connection.
SumUp is also the only company to offer an end-to-end EMV card acceptance solution built on proprietary hardware and mobile apps. This unique offering enabled SumUp to rapidly expand into 16 markets, including the U.S., Brazil, and Germany, making it the mPOS company with the largest global footprint.
The company has recently broadened its product portfolio in the POS and gastronomy space across the UK and continental Europe through the acquisition of leading POS software providers Goodwill and Tiller. These recent acquisitions will put SumUp into contact with potentially millions of new customers, from cafes and restaurants right up to the biggest sports stadiums and concert arenas; signaling a new generation of SumUp merchants coming into play. SumUp has also recently completed the acquisition of the core banking system provider Paysolut, as part of its strategy to build up its offering of banking services for merchants.
Despite the effects of COVID-19 on SMEs, SumUp has entered 2021 in its strongest position to date. Over the past year, SumUp has unveiled a host of new solutions and innovations to help businesses navigate the operating restrictions brought about by repeated lockdowns. This included the introduction of payment links & invoicing options, new online selling functionalities through the ‘SumUp Online Store’, and gift card collaborations with Google, Facebook, and Instagram; solutions all designed to help business owners to receive payments safely and continue trading in the face of uncertain economic circumstances.
In the year ahead, SumUp is looking to grow its 2000+ strong team by adding the world’s best talent to its 19 international offices on three continents. In addition to prominence in Europe, the US, and Brazil, SumUp’s long-term trajectory will include expansion into Asia. In Europe, SumUp has launched in Romania, bringing the number of its European markets to 29.
Within its new markets, SumUp acquired the full stake in the joint venture it previously had with Chile’s BancoEstado and will continue serving merchants and developing the market further exclusively under the SumUp brand. The Colombian market launch is also a hugely significant step for SumUp, with the fourth largest economy in LATAM and a population of over 50 million people now able to come into contact with the company’s technology. With thousands of merchants joining the SumUp services every day, its proprietary card terminals are relied upon by over 3 million businesses globally.
Commenting on the funding, Marc-Alexander Christ, Co-founder at SumUp said: “Each day I continue to be impressed by how the SumUp team has faced down the challenges of the past year and continued to deliver the vital, payments technology that empowers small businesses all over the world; helping them to continue to be successful doing what they love best. As one of the fastest-growing technology companies in the world, this cash injection – in addition to having the built-in option to expand the financing – will significantly accelerate the growth of our customer base, enhance SumUp’s technology leadership position, and drive the development of new services to support our merchants globally.”
Tom Maughan, from Bain Capital Credit, said: ”We’re proud to be backing SumUp once again and we recognize the truly impressive strides made by the company over the past couple of years. We have huge admiration for what SumUp is doing for small businesses across the world in helping them to keep trading and flourishing in some of the most trying economic circumstances imaginable. The doubling down of our investment in SumUp in this round is both a demonstration of our confidence in the company today and its strong future.”