SumUp is reportedly looking to expand on the 4 million businesses already using its services, which include POS card readers, cash advance via a partnership with VPC in the UK and tap-to-pay on iPhone for customers in the U.K., France and the Netherlands
British payments fintech SumUp is reportedly looking to expand following a $1.6 billion loan.
The private credit package will allow SumUp “to refinance existing debt, as well as have firepower to take advantage of any opportunities that arise over the next six months,” SumUp CFO Hermione Tomic told Bloomberg News Wednesday.
As per the report, SumUp is looking to expand on the 4 million businesses already using its services, which include point-of-sale (POS) card readers, cash advance via a partnership with VPC in the UK and tap-to-pay on iPhone for customers in the U.K., France and the Netherlands.
In late 2023, SumUp raised $307 million to expand its footprint and launch new services in a funding round. The news followed a report that the firm was hoping to raise $1.1 billion from private credit lenders.
The Bloomberg report — citing unnamed sources — said the firm’s new loan package comes from lenders that include Goldman Sachs Asset Management, BlackRock, Apollo Global Management, Oaktree Capital Management and Vista Credit Partners.
According to the report, tech firms have discovered a useful source of capital from the private credit market, which can offer funding to businesses with limited profitability that show a high growth potential.
In his annual letter to shareholders in April, J.P. Morgan Chase Chief Executive Officer Jamie Dimon warned that the banking system as we know it is shrinking relative to private markets and fintech, which are growing and becoming increasingly competitive.
These companies also “do not have the same transparency or need to abide by the extensive rules and regulations as traditional banks, even if they offer similar products — this often gives them significant advantage,” Dimon stated.
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