Not so bad in an economic and financial context that is not conducive to fundraising: the payment services specialist SumUp, known for its small white terminals intended for craftsmen, merchants and the self-employed, announced, Monday, December 11, that it had completed new financing of 285 million euros.
This round of funding involves several historic financial partners of the group, such as Bain Capital, but also a newcomer, the American Sixth Street, whose portfolio of seventy investments includes major successes such as Airbnb and Spotify.
The 285 million euros raised include loans and a “ large majority » of equity, specifies in World Hermione McKee, the financial director of the London-based company. However, it refuses to reveal on what valuation basis this new round of financing was concluded; the previous one, in mid-2022, for 590 million euros, valued SumUp at 8 billion euros, 60% less than initially mentioned.
Indeed, financing has become rarer and valuations less generous in the sector over the past year and a half, against a backdrop of rising interest rates. According to a study by S&P Global published in November, capital provided to “fintechs” fell to six billion dollars (5.6 billion euros) in the third quarter, four times less than in the first quarter of 2022.
To best complete its new funding round, SumUp has focused on profitability: the group has stabilized its workforce at around three thousand people and has, since the end of 2022, posted a positive operating result (Ebitda), explains Ms. McKee. In return, turnover growth is expected to be around 30% in 2023, half that of previous years.
The new funds raised, which bring the capital committed since the creation of the company in 2012 to nearly 1.8 billion euros, should make it possible to make SumUp a sustainably profitable group without compromising its development. “ We can consider being more opportunistic in M&A over the next two years, while continuing to enrich our service ecosystem”announces Ms. McKee.
If SumUp has based its growth on affordable technologies and very competitive prices (a terminal purchased for 39 euros and transaction fees of 1.75% in the basic offer), it is now increasing the services offered to its four million customers, from invoicing to creating an online store, including payment by SMS, WhatsApp or QR code, or “tap to pay”, the possibility of cashing directly on a mobile phone. Innovations which have, among other things, the advantage of generating subscription income, which is more stable than commissions.
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