SumUp is closing in on a significant investment round of €590 million ($624 million), which allows it to enter into a wider variety of financial services.
A decade ago, London’s SumUp became one of the many payment service providers that gained notoriety by selling dongles that convert inexpensive cellphones into card payment terminals. Its current offering includes various point-of-sale terminals.
As it continues to scale out its goals, the London-based firm is closing in on a significant investment round of €590 million ($624 million). According to the firm, the funds will be utilized for acquisitions, more personnel — it now employs about 3,000 people — and increased organic product development.
The latest investments increase SumUp’s value to €8 billion ($8.5 billion). The round was led Bain Capital Tech Opportunities. Over the past ten years, SumUp raised around €1.5 billion, including a €750 million round last year.
For a firm like SumUp, whose main source of revenue is point-of-sale terminals (POS), the pandemic brought about a need to diversify and focus on a wider range of services for small business clients. To serve that purpose, a sizable portion of its financing has been utilized for acquisitions and the expansion of services beyond POS payments, including business banking, internet payments and services centred on both.
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