London FinTech SumUp Notches $893 Million For Expansion

London FinTech SumUp has raised a 750 million euro (roughly $893 million) facility from existing backers Goldman Sachs and Bain Capital Credit, and new investors Temasek, Crestline, and funds managed by Oaktree Capital Management. The current round was oversubscribed due to high demand from existing and new investors. 

SumUp Co-Founder Marc-Alexander Christ said in Tuesday (March 16) a press release emailed to PYMNTS that his team showed true grit in tackling the challenges caused by the worldwide pandemic. His staff “continued to deliver the vital payments technology that empowers small businesses all over the world.”

The global payments startup is planning to use the new funds to advance global expansion and make strategic mergers and acquisitions (M&A). The funding will also help SumUp further support its merchants, which are in 33 markets worldwide. 

“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,” Christ said.

The recent acquisition of Goodtill and Tiller helped SumUp grow its product suite in the point of sale (POS) space and in the gastronomy sector across the U.K. and continental Europe. The company also purchased Paysolut, a core banking system provider, which aligns with SumUp’s strategy to expand its banking services for merchants.

The acquisitions also give SumUp access to millions of possible new clients, including cafés, restaurants, sports stadiums and concert arenas.

Bain Capital Credit’s Tom Maughan said that SumUp has made “truly impressive strides” and Bain has “huge admiration” for SumUp’s efforts in helping businesses worldwide “keep trading and flourishing” despite the tough economic times fueled by COVID-19. Bain doubled down on its investment in this funding round, which shows “our confidence in the company today and its strong future.”

Mastercard and SumUp recently partnered to bring digital payments to commercial Ford trucks in the U.K, Germany, France, Italy and Spain. The new payment service will enable card or contactless payments immediately and helps entrepreneurs have greater control over their cash flow. It also gives customers the option to pay by debit or credit card, via contactless or by chip and pin.