Payments start-up SumUp raises €590m from Bain-led consortium

SumUp is the latest payment fintech to close a successful funding round

by | June 23, 2022 | bobsguide

UK payments company SumUp has raised €590m in debt and equity financing to accelerate its product development.

Bain Capital Tech Opportunities led the funding round, with participation from BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, and Sentinel Dome Partners, among others.

Split equally between debt and equity, the financing package will be used for acquisitions, team expansion and the organic development of products aimed at small businesses in several additional markets.

“The funds we’ve raised will enable us to continue to build our product ecosystem, expand into new markets, pursue value-adding acquisitions, and continue levelling the playing field for small merchants at a global scale,” said Marc-Alexander Christ, co-founder and CFO at SumUp.

The announcement of the capital raise follows the company’s recent launch in Peru, where the company is offering payment links and POS Air products.

With the latest funding, the company has so far raised €1.5 billion in capital raises (having raised a €750m facility last year) and boosted its enterprise valuation to €8 billion.

SumUp operates in 35 countries worldwide, providing four million businesses with their payment solutions and related services, including integrated payments, invoicing, and POS terminals, among others.

The financing package adds to the company’s series of wins this year that has seen the fintech group secure noteworthy partnerships.

In February, the UK fintech partnered with New York-listed giant FIS to access its Worldpay offerings for acquiring services.

That same month, the company also partnered with PrestaShop, an e-commerce platform, to give the latter’s European and Latin American merchants access to SumUp’s payment products.

Payment industry attracts investors

The massive investment in SumUp from notable investors highlights the growth opportunity in the payments industry, which in recent years has seen a mix of consolidations, expansions and funding.

According to a 2021 Global Payments Report by McKinsey, SMBs will spend more than $100 billion on payment services by 2025.

Morgan Stanley, in its Technology, Media and Telecoms conference, also highlighted payment technology as a high-growth industry, citing embedded financial services, cross-border payments and digital wallets as the driving force behind it.

Last month, Irish-headquartered B2B payment infrastructure-as-a-service provider TransferMate raised $70 million in funding from UK rail worker’s pension fund, Railpen.

That same month, UK peer Paddle also raised $200 million in Series D equity and debt financing that same month. The equity round was led by KKR while Silicon Valley Bank provided the debt financing.

In the B2B BNPL space, Hokodo raised $40 million in Series B funding from a consortium of investors led by Notion Capital.



Changing Regs and Standards Creates a Vital API Role

Best Practice | Payments Changing Regs and Standards Creates a Vital API Role

How Does NXTsoft OmniConnect Work for Partners?

Video | Payments How Does NXTsoft OmniConnect Work for Partners?



Compass Plus Technologies
Digital Payments Transformation with ISO 20022 as the Springboard

White Paper | Banking Digital Payments Transformation with ISO 20022 as the Springboard