Payments Firm SumUp Seeks New Funds at $22 Billion Value

(Bloomberg) -- SumUp is considering raising new money in a funding round that could value the U.K. payments company at about 20 billion euros ($22.6 billion), according to people familiar with the matter.

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London-based SumUp could seek more than 500 million euros from investors, the people said, asking not to be identified as the matter is private. A fundraising of that size could make SumUp one of the most valuable startups in the U.K.

Deliberations are in the early stages and no final decisions on the timing or target of any fundraising have been made, the people said. A representative for SumUp declined to comment.

Shares of Groupon Inc., one of SumUp’s early backers, jumped the most since last March in New York trading Wednesday. Groupon closed up 20% to $26.68, giving it a market value of $789 million.

SumUp makes card readers that can be used by merchants to accept credit, debit and contactless payments in person. It also offers links for accepting payments online, as well as invoicing and QR codes. The company raised 750 million euros in March 2021 from existing and new investors including Goldman Sachs Group Inc. and Temasek Holdings Pte. Later in the year it bought San Francisco-based Fivestars as part of a push to become a one-stop service provider for small businesses.

Shopping over the internet boomed during the Covid-19 pandemic as store closures forced consumers online for both goods and services. The value of digital marketplace Etsy Inc., meanwhile, has soared since the start of 2020 amid a broader demand for handmade crafts.

To be sure, the recent stocks selloff has hit the share prices of listed technology firms, and prominent investors in the sector have started to raise concerns about a wide disconnect between private and public market valuations. This is forcing a reassessment by venture capitalists of how eagerly they should pursue deals at present, and at what price.

(Updates with Groupon shares in fourth paragraph)

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