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British Payment Firm SumUp Secures $307M in Funding Round for Global Expansion
London-based financial services company SumUp has secured £285 million worth approximately $307 million in its latest funding round to expand its business offerings to other parts of the world outside the United Kingdom.
The company has already established its presence in other financial markets outside Europe, including the United States and Australia.
Global Expansion Plans
According to an official announcement on December 11, the investment round was led by Sixth Street Growth, a subsidiary of the renowned global investment company Sixth Street.
The funding saw contributions from both new and existing investors, such as Bain Capital Tech Opportunities Fin Capital and debt financing firm Liquidity Group. The round primarily consists of equity, with a minor portion raised as debt.
The London-based fintech firm, serving approximately 4 million small businesses across Europe, the Americas, and Australia, plans to use the fresh capital to expand its services around the world to help strengthen its foothold in the industry.
SumUp’s organic growth strategy involves launching additional financial services to better serve its extensive small business clientele.
Similarly, the company aims to penetrate new geographies, extending its reach beyond its current strongholds. The payment company also plans to explore mergers and acquisitions as part of its goal to stay competitive in the dynamic fintech landscape.
Firepower to Act on Opportunities
Hermione McKee, SumUp’s chief financial officer, described the new funding round as “more firepower to act on opportunities”. He further noted that the financial services firm plans to use the fresh capital for strategic initiatives over the next two years.
Earlier this month, McKee told CNBC that the firm is constantly accessing its buy versus build strategy and scouting for more regions to explore. The firm is eyeing both Africa and Asia for its next expansion plans.
“We have this foothold in Latin America, and there’s more expansion that can be done there. Then we look at Asia, how we think about that region, and then obviously opportunities across Africa. There are so many opportunities globally. We’re constantly assessing this ‘buy versus build’ strategy.”
SumUp Lunches Upgraded Point of Sale
Currently valued at $8.6 billion after its £590 million ($624 million) investment round last year, SumUp stands strong in private markets with no immediate plans for an initial public offering. The company’s access to private capital solidifies its financial stability, allowing it to focus on strategic expansion.
The fintech firm, known for its compact card readers, has been actively diverting its services outside of traditional payments.
In addition to payments, SumUp has introduced other innovative solutions, including self-service kiosks and the integration of Apple’s Tap to Pay feature. Earlier this August, the firm rolled out an upgraded Point of Sale (PoS) version to help small businesses turn customers into fans.
According to the announcement, the improved PoS can create automated marketing campaigns with rewards to lure customers back.
SumUp also strengthened its cash advance services, securing a $100 million credit facility from Victory Park Capital this past summer. The move allowed merchants to access cash advances or business loans based on card sales – an action met with positive merchant response.
McKee said the lending product thrives, with most merchants promptly repaying.
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British Payment Firm SumUp Secures $307M in Funding Round for Global Expansion