SumUp — the UK fintech known for its sleek card readers and tools for small businesses — is preparing for a public listing as early as next year. The company has reportedly hired investment banks to explore its options, with a target valuation of around £15 billion (Finextra).
Key details
- Valuation & timing: Discussions are still in the early stages, but SumUp’s goal is to achieve a £15 billion valuation, nearly doubling from its last funding round (Finextra).
- Global reach: Founded in 2012, SumUp now operates in 36 markets and serves over 4 million merchants, offering services from payment terminals to business accounts, invoicing, and banking tools (Finextra).
- Growth story: In 2022, SumUp raised €590 million in a round led by Bain Capital, valuing the company at €8 billion at the time. Since then, adoption of its “SumUp Business Account” has surged past one million users(Finextra).
- IPO strategy: Locations under consideration include London and New York, with SumUp emphasizing that while preparations are underway, they are “in no hurry” to list until the timing and market conditions are right (Finextra).
Why now?
- Investor appetite: There is growing demand for profitable fintechs with strong fundamentals and recurring revenue streams (Finextra).
- Capital for acquisitions: IPO proceeds could allow SumUp to acquire smaller competitors and further consolidate its leadership in the European payments market (Finextra).
- Fintech momentum: With recent positive fintech listings, SumUp may see a window of opportunity to step into the public markets.
Potential risks
- Valuation pressure: Achieving £15 billion depends heavily on market sentiment at IPO time. A cooling fintech market could force adjustments.
- Choice of listing venue: A London IPO would boost the UK market’s fintech profile but may offer lower valuations compared to New York, which brings higher scrutiny but often richer multiples.
- Profitability challenges: Hardware sales like card readers tend to have lower margins, so scaling software and subscription services will be key for long-term growth.
- Competition & compliance: SumUp faces tough rivals like Square, PayPal, and Adyen, as well as tightening regulations in payments and digital banking.
Implications
- For founders & early investors: A successful IPO would offer a path to realize gains while still keeping control of the company (Sifted).
- For merchants: Increased transparency and investor pressure could mean faster product improvements — but also higher fees if profitability targets tighten.
- For London: If SumUp lists in London, it would be a boost for the UK’s fintech ecosystem, which has recently seen companies migrate to U.S. markets (Fintech Weekly).
Bottom line
SumUp’s potential IPO signals a maturing European fintech landscape. With a £15 billion target valuation and millions of global users, the company’s next move could reshape the balance of power in small business payments — and send a strong message about the future of London as a fintech hub.
