SumUp, a payments firm, reported a notable revenue increase in 2023 even as growth has decelerated from previous years.
- The company achieved revenues of €188m (£156m) in 2023, marking a 26% rise compared to the prior year.
- Despite the revenue increase, the growth rate is slower than the nearly 50% leap experienced the year before.
- SumUp aims for a $9bn valuation as it gears up for a potential share sale, collaborating with Goldman Sachs.
- SumUp’s strategy involves expanding its merchant services and continuing branding investments, reflecting robust business resilience.
SumUp, a prominent player in the payments industry, revealed a significant rise in its 2023 revenues, reaching €188m (£156m). This represents a 26% increase compared to 2022, though marked by a slowdown from the previous year’s growth rate of approximately 50%. Despite the deceleration, the company remains profitable, with pre-tax profits recorded at €783k. SumUp attributes this success to the robustness of its business model and efficient cost management.
As part of its strategic efforts, SumUp is aiming for a valuation of up to $9bn in anticipation of a forthcoming share sale. Reports suggest the firm is working with Goldman Sachs to execute this transaction, potentially selling between €200m and €400m worth of existing shares. The shares include those held by the company’s founders and early investors. However, these discussions are still in the early stages, and the management might choose not to proceed with the transaction.
SumUp is expanding its offerings to merchants, planning to launch new features and services. This initiative is part of a broader strategy to attract more merchants and bolster customer acquisition, which proved successful in 2023. Additionally, the firm is committed to ongoing branding campaigns that have delivered positive outcomes.
The company’s resilience is accentuated by its ability to attract new investors, as evidenced by the increase of 100k shares in its Luxembourg-based parent company’s capital in March, resulting in £4m in cash. Earlier in the year, the parent company also secured €1.5bn through a funding round with credit lenders.
In terms of human resources and operational presence, SumUp added 16 new employees to its London office, bringing the total to 50 staff members. A significant portion of SumUp’s revenue, about €160m, is generated from merchant fees, while €12m comes from the sales of its card readers, popular among small businesses.
SumUp’s strategic growth efforts and planned share sale highlight its aim to solidify its position among the leading tech companies in the UK.
