The media reports that the SumUp payment company, which is based in London, intends to raise €1 billion ($1.1 billion) from private creditors.
Journalists, citing anonymous insiders, report that the mentioned funding of the firm plans to spend on refinancing existing debt. At the official level, the company has not yet commented on this information.
SumUp’s offerings include point-of-sale (POS) card readers, cash advances through a partnership with VPC in the United Kingdom, and Tap to Pay on iPhone for customers residing in the UK, the Netherlands, and France.
Two months ago, the company was able to raise $307 million. The firm said that this funding will be used to expand its scale presence in the market and to develop new services. Also two months ago, the company noted that during 2023 its activities were carried out with a positive EBITDA indicator.
Moreover, last year SumUp managed to maintain the dynamic of revenue growth at a level exceeding the 30% mark.
The company’s chief financial officer, Hermione McKee, said in late December that the $307 million funds provide the brand with additional firepower to realize growth opportunities and accelerate the development of products that expand small business capabilities.
In August 2023, SumUp raised a $100 million loan facility to launch a commercial financing solution. In this case, the brand sought to provide companies in its customer base with the opportunity to cope with emergencies or invest during a period when the cost of living crisis has become a sensitive impact factor requiring a certain response.
SumUp co-founder Marc-Alexander Christ says that the cash advance product can support business growth transparently and fairly, allowing sellers to do what they do best, and at the same time not worry about solving issues related to access to funds.
The London-based company was able to achieve success in servicing the micro-and-nano merchant segment. In the mentioned business sectors, firms are run entirely by a sole proprietor. SumUp provides equipment for POS hardware and adds emissions in addition to its core card reader business.
As we have reported earlier, Payment Service Provider Bold Raises $50 Million.
