SumUp, a London-based payments firm, witnessed a significant revenue increase in 2023, positioning itself for a potential $9bn valuation.
- The company’s growth rate slowed compared to previous years, with a 26% revenue increase over the past year.
- Despite a decrease in pre-tax profits, SumUp maintained its profitability due to effective cost management and business resilience.
- SumUp continues to explore a potential share sale with Goldman Sachs, with hopes of attracting new merchants and enhancing services.
- The company has expanded its workforce and increased its share capital amidst ongoing efforts to bolster its market standing.
SumUp, a renowned London-based fintech company, reported a notable increase in its revenues for the year 2023, reaching €188m (£156m), marking a 26% rise compared to the preceding year. This growth comes as the company considers a share sale that could potentially elevate its valuation to $9bn.
Although SumUp’s revenue growth rate decelerated compared to the previous year’s approximately 50% surge, the company sustained a strong financial position. Pre-tax profits saw a decline of 29%, amounting to €783k. The company attributes its maintained profitability to strategic cost management and the resilience of its business model.
Looking ahead, SumUp plans to continue expanding its merchant base while innovating by introducing new features and services. Reportedly, discussions are underway with Goldman Sachs concerning the sale of existing shares between €200m and €400m euros, encompassing shares held by founders and early investors.
Amid reports of a €1.5bn in credit raised earlier this year, SumUp increased the share capital of its Luxembourg-based parent company by 100k shares in March, receiving £4m in cash. Additionally, the company expanded its London office workforce by 16 employees, bringing the total to 50.
The firm’s latest figures indicate that €160m of its revenue came from merchant fees, with an additional €12m from the sales of its popular card readers. This represents over a 50% increase in card reader sales compared to the previous year.
SumUp’s robust financial performance in 2023 demonstrates its strategic positioning for future growth and potential valuation increase.
