SumUp, the renowned payments firm, marked a significant revenue increase in 2023 while eyeing a potential $9bn valuation.
- The firm’s revenue soared to €188m, indicating a 26% growth compared to the previous year.
- Despite a slowed growth rate, SumUp’s business model demonstrated resilience and profitability.
- SumUp is collaborating with Goldman Sachs for a major share sale valued between €200m and €400m.
- The firm continues to expand its workforce and offerings, underscoring its commitment to growth.
SumUp experienced a robust revenue increase to €188m in 2023, marking a 26% uptick from the prior year. This growth, while notable, is a deceleration from the firm’s previous 50% surge in sales. The London-based company remains recognized for its versatile card readers that cater largely to small merchants.
The firm’s growth rate, although diminished compared to last year’s sales leap, still underscores its effective business model. Financial statements reveal that SumUp’s pre-tax profits declined by 29% to €783k, yet the company maintains a profitable stance due to strategic cost management. SumUp’s focus on enhancing merchant services and broadening its merchant base remains integral to its operations.
Collaborating with Goldman Sachs, SumUp is preparing for a substantial share sale valued between €200m and €400m. This potential sale, which could see SumUp achieve a valuation of up to $9bn, would involve existing shares, some held by founders and early investors. Although talks are in nascent stages, the share sale highlights SumUp’s strategic financial planning.
Further, SumUp has invested in expanding its workforce and services. The firm increased its share capital by 100,000 shares, netting £4m in cash, and expanded its team in London by 16 employees. The company’s Luxembourg-based parent reportedly raised €1.5bn from lenders, signifying financial robustness.
The bulk of SumUp’s 2023 turnover derived from merchant fees, accounting for approximately €160m. Sales of its popular card readers contributed €12m, displaying a significant 50% increase over the previous year. These numbers highlight SumUp’s sustained growth trajectory and its commitment to refining its business model.
SumUp’s strategic maneuvers in 2023 set a solid foundation for potential market valuation expansion.
