FinTech: Point-of-Sale Device Company SumUp Raises $892M Debt Facility

March 17, 2021 | FinTech, News, Venture Capital
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SumUp is the leading mobile point-of-sale (mPOS) company in Europe.

SumUp is a London-based global fintech company that has developed point-of-sale hardware and mobile and web apps that simplify the acceptance of payments by small merchants. It has also developed a suite of APIs and SDKs for integrating SumUp payment into other apps and services. The startup announced Tuesday its raise of a debt funding of €750 million (US$892 million at today’s rates).

Debt funding

Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and funds managed by Oaktree Capital Management invested in the oversubscribed round (one of the biggest in the region to date according to TechCrunch).

Because the company enjoys stable and significant cash flows, it found it strategically beneficial to raise debt instead of equity, thereby avoiding capital dilution.

Use of funds

SumUp will use the new money to further boost its growth and to continue to acquire and support its existing merchants in 33 markets across the world. It will hire additional people in its 19 offices and plans, longer-term to expand into Asia.

“As one of the fastest-growing technology companies in the world, this cash injection — in addition to having the built-in option to expand the financing — will significantly accelerate the growth of our customer base, enhance SumUp’s technology leadership position, and drive the development of new services to support our merchants globally,” said SumUp Co-Founder Marc-Alexander Christ, in a statement.

It will also refinance existing debt facilities to lower its funding costs.

Significantly, SumUp is looking to expand its suite of product offerings, both through in-house development as well as via acquisitions.

M&A

Last month, SumUp acquired core banking system provider Paysolut, founded in Lithuania, and its partner for the past two years, for an undisclosed amount.

Paysolut was deemed to be a natural fit for SumUp because its banking solutions are designed to empower growing businesses.

In November, SumUp acquired partner and point-of-sale (POS) software provider Goodtill for an undisclosed amount.

Goodtill offered its solutions to the restaurant, events, and hospitality sectors. It processed over £500 million transactions annually, with revenues growing 100 percent year-on-year since 2017, it said at the time of the transaction.

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