SumUp Secures €285M Funding Amid Fintech Market Challenges

SumUp, a London-based fintech serving over 4 million small businesses globally, secures €285 million in funding led by Sixth Street Growth. The capital aims to support SumUp through challenges in the present fintech market, facilitating organic expansion with new financial services and extending its reach beyond the current 36 regions. The funding will also fuel inorganic growth through M&A activities, addressing the tight funding situation faced by fintech firms globally.

While the positive EBITDA since Q4 2022 and over 30% YoY top-line growth are highlighted, SumUp faces a challenging market. The number of customers has remained stagnant at 4 million for two years, and recent secondary transactions, including Groupon, indicate downward pressure on valuations. The fintech sector globally is experiencing decreased commerce and share price declines of major players like PayPal, Square, and Stripe.

SumUp, valued at over $8.5 billion in 2022, aims for continued growth and efficiency amid market unpredictability. The funding round, involving existing investors Liquidity Group, Fin Capital, and Bain Capital Tech Opportunities, emphasizes confidence in SumUp's innovative culture, sustained growth, and strategic approach to expansion.

Managed by Sixth Street Growth, Nari Ansari acknowledges SumUp's decade-long track record of sustained growth, innovation, and market leadership. The funding reflects Sixth Street Growth's alignment with SumUp's strategic approach and confidence in its ability to navigate the challenges of the evolving fintech landscape.