SumUp, a prominent fintech company, has reported a significant increase in its revenues for 2023, while maintaining profitability.
- The company’s revenue rose to €188 million, a 26% increase compared to the previous year, despite a slowdown in growth rate.
- Pre-tax profits fell by 29% to €783,000, yet SumUp expanded its merchant base by focusing on new feature additions.
- SumUp is contemplating a share sale, potentially valuing the company at $9 billion, with Goldman Sachs advising on the process.
- Reports suggest that SumUp has raised significant funds from credit lenders, enhancing its operational capabilities.
SumUp, a leading player in the fintech space, witnessed a substantial 26% rise in its revenues for 2023, amounting to €188 million. This increase, although indicative of robust performance, exhibits a slowdown compared to the previous year’s approximately 50% surge. Concurrently, pre-tax profits experienced a decline of 29%, falling to €783,000. The company has attributed its sustained profitability to adept cost management and strategic business resilience.
The firm has maintained an upward trajectory by attracting new merchants, underscoring its commitment to expanding its service offerings. According to its accounts, SumUp plans to introduce additional features and services to its merchant base in the upcoming year, alongside investing in customer acquisition and branding campaigns which yielded favourable outcomes in 2023.
Impressively, SumUp is evaluating a share sale, potentially reaching a valuation of $9 billion. Management is collaborating with Goldman Sachs to facilitate the sale of €200 million to €400 million worth of existing shares. These include shares held by founders and early-stage investors, although discussions remain in the preliminary phase and the decision to proceed has not been finalised.
In a strategic move to bolster its financial footing, SumUp enhanced the share capital of its Luxembourg-based parent company by 100,000 shares in March, accruing £4 million in cash whilst also reportedly raising €1.5 billion from credit lenders earlier this year. This infusion of capital is expected to fortify the company’s operational capabilities.
The company has demonstrated a robust performance in its sales revenue; approximately €160 million originated from merchant fees, with €12 million derived from card reader sales, representing more than a 50% increment from the previous year. Additional workforce expansion was observed with an increase of 16 employees in its London office, elevating the headcount to 50 employees.
In summary, SumUp’s strategic initiatives and financial manoeuvres underscore its ambition and potential within the fintech industry.
