Payments startup SumUp has secured €590 million, or $624 million in its latest funding round at a new valuation of $8.5 billion. The latest funding which came in a combination of debt and equity brings the total funding raised by the London-based firm to €1.5 billion. Over the last ten years, the company has raised €1.5 billion but most of this funding had been in debt including a €750 million debt round that took place last year.
Significant parts of the funding received over the years by SumUp have been used to build services beyond its basic POS payments business. The startup has ventured into areas like business banking, and online payments and offers other related business services.
The funding round was led by Bain Capital Tech Opportunities and received participation from funds managed by BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, Sentinel Dome Partners, and others. SumUp’s rivals include Jack Dorsey-owned Square and PayPal’s Zettle.
SumUp which is active in 35 countries says the recently acquired funds will be used to hire more talents, sponsor acquisitions, and fuel more organic product development. “The funds we’ve raised will enable us to continue to build out our product ecosystem, expand into new markets, and pursue value-adding acquisitions,” co-founder Marc-Alexander Christ said in a statement. Currently, SumUp has about 3,000 employees.
“SumUp has continually evolved to empower a growing and diverse field of small businesses with payment solutions and tools to efficiently connect with their everyday consumers. SumUp’s leadership team has led the company to sustained and accelerated growth through expansion to more than 30 countries where they have had a direct and positive impact on the small business ecosystem. We’re proud to contribute our deep fintech and payments experience to aid SumUp’s remarkable ability to push the boundaries and lead an incredibly competitive industry,” Darren Abrahamson, a managing director at Bain Capital Tech Opportunities, in a statement.