The international fintech company SumUp has funded €1.5 billion (US$1.6 billion) in a private credit round led by Goldman Sachs, making it the largest private credit transaction to occur in Europe in recent years.

Only a few months have passed since the global fintech raised US$307 million in fundraising in December 2023. Sixth Street Growth led the round, which also included participation from Bain Capital Tech Opportunities, Fin Capital, and Liquidity Group.

With a string of strong sales performances, positive profits before interest, taxes, depreciation, and amortisation (EBITDA) since December 2022, and growth over a decade, the purchase is a huge boost for SumUp and underlines market confidence in its future potential.

SumUp hopes to leverage further global expansion prospects and strengthen its dominant market position by refinancing its current debt with the fresh money it has acquired.

SumUp: A secure investment

SumUp is a solid investment for both novice and seasoned investors because of its exceptional track record of balancing sustainable expansion with financial responsibility through the introduction of new markets and products while maintaining tight financial controls.

SumUp has grown so successfully over the years that its most recent investment round was actually oversubscribed.

New venture capitalists AllianceBernstein, Apollo Global Management, Arini, Deutsche Bank AG, Fortress Investment Group, SilverRock Financial Services, and Vista Credit Partners joined returning SumUp investors BlackRock, Crestline Investors, Liquidity Capital, Oaktree Capital Management, Sentinel Dome, Temasek, and Goldman Sachs.

Hermione Tomic, Chief Financial Officer (CFO) of SumUp, states: "Over the past ten plus years, we have been able to develop sustainably by servicing millions of merchants worldwide thanks to the consistent and strong support we have received from the investment community.

Our needs from the capital markets have changed as the business grows and our offerings become more extensive. Lenders are aware of our successful strategies for attaining, maintaining, and balancing profitability and growth, and they support our goal of enabling everyone to construct a successful business.

"This additional funding will help us as we concentrate on offering our merchants the best possible support experiences and the goods and resources they require to be successful."

In order to assist companies during a challenging economic time, SumUp has lately extended its assistance for merchants by introducing new goods, such as its Cash Advance service, which will be introduced in 2023.

Additionally, by introducing POS Lite, a point-of-sale (POS) payments solution to assist small, independent enterprises, it assisted SMEs in navigating the cost-of-living challenge.

SumUp is positioned to capitalize on upcoming organic and inorganic growth possibilities thanks to its most recent fundraising round.