In the current economic conditions, there is significant demand from SMEs to access finance. This demand is attributed to the reason that banks have scrutinised access to credit and payment terms have been extended. However, there are companies such as Triver and Parafin that help small businesses with the necessary cash flow.
Another big name in this sector is SumUp! With roots in Germany and now based in London, the fintech company provides payments and related services to nearly 4 million small businesses in Europe, the Americas, and Australia. The company has tapped €285 million in financing led by Sixth Street Growth alongside Bain Capital Tech Opportunities, Fin Capital, and Liquidity Capital. Previously, SumUp raised €590 million at a €8 billion valuation. To date, SumUp has reportedly raised a total funding of $1.5 billion.
With the funding, the London unicorn hopes to withstand the current uncertain fintech climate and will expand its global footprint to continue providing the tools and services small merchants need to build, operate, and scale their businesses. It will also continue to grow its business by launching more financial services. Already, it offers invoicing, loyalty, business accounts, and more.
Helps small merchants
Founded in 2012 by Marc-Alexander Christ, Petter Made, Jan Deepen, and Stefan Jeschonnek in London, SumUp offers physical card readers and manages payments in online stores. It was founded to help small merchants start, run, and grow their businesses through a fair, easy, and reliable payment solution.
Recently, SumUp expanded its product and service offering for small merchants with SumUp One. It is a multi-product subscription that bundles the most popular features at a fixed, reduced price. The company’s financial services Super App provides merchants with a free business account and card, an online store, and an invoicing solution, and in-person and remote payments seamlessly integrated with SumUp’s proprietary card terminals and point-of-sale registers.
In addition to providing finances for small businesses, SumUp donates 1% of its sales to support environmental projects and advocates for education and entrepreneurship projects around the world.
Hermione McKee, CFO of SumUp, said: “Our mission is to create a world where everyone can build a successful business. SumUp’s consistent growth over the past eleven years is a direct result of the success of the traders we serve and would not be possible without the unwavering trust and support of the investor community. We are pleased that Sixth Street is now part of this community. This funding gives us additional ability to pursue growth opportunities and accelerate product developments that support small businesses.”
Darren Abrahamson, Managing Director at Bain Capital Tech Opportunities, commented: “SumUp continues to deliver on the promise of helping small businesses thrive. SumUp has impressed us as investors recently with its successful pursuit of profitability and growth. We are very optimistic about the future of SumUp and will therefore continue to invest in the company.”
