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UK fintech startup SumUp has raised €750m (£643m, $893m) from several investors including Goldman Sachs (GS) and Bain Capital Credit.
Goldman and Bain had also led a $371m round of debt for the company in 2019.
SumUp is a fintech company that allows businesses to receive payments both in-store and online via its card terminal and competes with iZettle, among others in this space. But it has also diversified into other payment-related services, such as building online shops and taking payments over the web.
“With Goldman Sachs’ and Bain Capital Credit’s continued support as existing investors and high demand from new investors, the current round was oversubscribed,” the company said in a statement.
SumUp will use the funds to accelerate its growth, acquire and support its existing merchants in 33 markets (it was launched most recently in Chile, Colombia, and Romania) and expand its product suite.
Marc-Alexander Christ, co-founder at SumUp, said that “this cash injection – in addition to having the built-in option to expand the financing – will significantly accelerate the growth of our customer base ... and drive the development of new services to support our merchants globally.”
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In 2018, SumUp released its 3G reader, a card terminal that lets merchants process payments without the need for a mobile app or constant Wi-Fi connection.
The company has recently broadened its product portfolio in the point-of-sales (POS) and gastronomy space in the UK and Europe through the acquisition of POS software providers Goodtill and Tiller.
It said these acquisitions will put it into contact with potentially millions of new customers, from cafes and restaurants to biggest sports stadiums and concert arenas; "signalling a new generation of SumUp merchants coming into play."
Over the past year, SumUp said it has helped businesses navigate the operating restrictions brought about by lockdowns. This included the introduction of payment links and invoicing options, online selling functionalities and gift card collaborations with Google (GOOGL), Facebook (FB), and Instagram.
SumUp is now looking to grow its 2,000-plus strong team and wants to expand into Asia, it said.
The payments industry is seeing a boom at the moment. Earlier this week, it was reported Stripe is now worth $95bn, after raising $600m from investors.
The company, which was founded by two Irish brothers, on Sunday night confirmed it had raised money from investors including Allianz (ALV.DE), Axa (CS.PA), Baillie Gifford, Fidelity, Sequoia Capital, and Ireland’s National Treasury Management Agency.
Fintech emerged in the wake of the 2008 financial crisis as one of the most exciting growth areas and London has become an international hub for the industry, accounting for 10% of the global market. The sector covers everything from digital banks to payment companies and regulation businesses.
A recent landmark review into the UK's booming fintech sector has said Britain "cannot rest on our laurels," urging the government to make key reforms to help the sector keep growing post-Brexit and COVID.
The Kalifa Review set out a five-point plan to help Britain's £11bn ($15.3bn) fintech sector continue to thrive. The plan makes recommendations covering policy, regulation, skills, connectivity, talent, and investment.
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