Prime Highlights:
- UK fintech SumUp is exploring an IPO that could value the company between $10 billion and $15 billion.
- The company plans to raise funds from the IPO to acquire competitors and expand in the European payment market.
Key Facts:
- SumUp was founded in 2012 and serves over 4 million customers in 36 countries with card readers, business accounts, and invoicing services.
- The founders are expected to remain the largest shareholders, and the IPO could take place within the next year.
Key Background:
UK-based fintech company SumUp is reportedly exploring a stock market listing that could value the business between $10 billion and $15 billion, providing a rare boost for the London Stock Exchange.
SumUp was founded in 2012 by Marc-Alexander Christ, Stefan Jeschonnek, Jan Deepen, and Daniel Klein. It makes card readers for small and medium businesses, offers business accounts and invoicing services, and has over 4 million customers in 36 countries.
According to sources familiar with the matter, SumUp is weighing an initial public offering (IPO) in either London or New York and has been discussing the plans with investment banks. The founders are expected to remain the biggest shareholders, and the company plans to go public within the next year.
SumUp wants to raise money from the IPO to buy other companies, as it sees opportunities to grow in Europe’s payment processing market. The company has grown a lot in recent years. In 2022, it raised €590 million in a fundraising round led by Bain Capital, which valued the business at €8 billion. It had initially targeted a valuation of €20 billion. Last year, SumUp worked with Goldman Sachs on a secondary share sale that was expected to value the company at $9 billion.
In 2023, Hermione McKee, SumUp’s Chief Financial Officer, said the company was not in a hurry to go public, showing that it is taking a careful approach to growth.
Interest in UK fintechs is growing. For example, Starling plans a share sale that could value it at £4 billion, and Revolut is talking to investors for new funding.
If SumUp were listed in the UK, it would be a rare success for the London Stock Exchange, which has had fewer listings than the US in recent years.
With many customers, a variety of services, and plans to grow, SumUp’s possible IPO is getting attention from investors and the fintech sector.
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