SumUp’s revenues surged 26% in 2023 as the payment company prepares for a potential $9bn valuation in a future share sale.
- Despite a slowdown from previous growth rates, SumUp has maintained profitability through efficient cost management and strategic business model resilience.
- The fintech company is working with Goldman Sachs to potentially sell existing shares, aiming to enhance its market position.
- Increased revenue from merchant fees and card reader sales underlined SumUp’s strong market presence and business strategy.
- SumUp’s operational expansion has included workforce growth and a significant increase in share capital, reflecting its future growth plans.
In 2023, SumUp reported a 26% increase in revenues, amounting to €188 million (£156 million), as the company plans for a share sale potentially valuing it at $9 billion. This growth, while slower than the substantial 50% surge witnessed the preceding year, underscores SumUp’s robust business model, despite the deceleration. Pre-tax profits fell by 29% to €783,000, yet SumUp highlighted its successful cost management and strategic business modifications, ensuring continued profitability and increased sales turnover.
SumUp has enlisted Goldman Sachs to potentially facilitate the sale of €200-€400 million worth of existing shares, including those owned by company founders and early investors. These discussions, as reported by Reuters from sources familiar with the proceedings, remain in preliminary stages, and no definitive decisions have been made regarding the transaction’s advancement.
The firm’s revenue composition in 2023 primarily stemmed from merchant fees, contributing approximately €160 million, alongside card reader sales generating €12 million—a more than 50% increase from the previous year. This revenue structure reinforces SumUp’s strong foothold in the payments sector, especially among small merchants who form a large part of its client base.
Strategically, SumUp has expanded operationally by increasing its employee count in the London office to 50, adding 16 new staff members in the past year. Moreover, it boosted the share capital of its Luxembourg-based parent company by 100,000 shares in March, acquiring £4 million from this transaction. These developments align with the company’s ambition to introduce new features and services, focusing on enhancing its market presence and merchant offerings.
Further illustrating its financial strategy, earlier this year SumUp raised €1.5 billion from credit lenders, demonstrating significant support from financial institutions. This funding round bolsters its capital structure and facilitates ongoing and future business expansions. SumUp continues to attract merchants, driven by its investment in branding campaigns and customer acquisition strategies. The company’s ongoing initiatives indicate confidence in its growth trajectory, despite varying market conditions.
SumUp’s financial performance and strategic initiatives position it strongly for future growth and enhanced market valuation.
