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SumUp Chief Financial Officer Hermione McKee said the fresh capital gives the company “more firepower to act on opportunities,” including acquisitions and new country launches.

SumUp

British payments startup SumUp, known for its small card readers, on Monday announced it has raised 285 million euros ($306.6 million) in a bumper round of funding that values the company north of $8.6 billion.

Sixth Street Growth, the growth arm of global investment firm Sixth Street, led the investment in SumUp, while existing existing investor Bain Capital Tech Opportunities, fintech investment firm Fin Capital, and debt financing firm Liquidity Group, participated in SumUp’s latest round as well. The round predominantly consisted of equity, though a small portion of the funds was raised as debt.

SumUp Chief Financial Officer Hermione McKee said the fresh capital gives the company “more firepower to act on opportunities that we see arising over the course of the next two years.”

“If we think about our geographical expansion, in August we launched Australia as our 36th market globally,” McKee told CNBC in an interview last week ahead of the news.

“We have this foothold in Latin America and there’s more expansion that can be done there. Then we look at Asia, how do we think about that region, and then obviously opportunities across Africa. There’s so many opportunities globally. We’re constantly assessing this ‘buy versus build’ strategy.”

With this round, the company says it “continues to build further” on the valuation it attained in the summer of 2022, when SumUp was last valued at 8 billion euros ($8.6 billion) in a 2022 funding round that saw the firm raise a whopping 590 million euros of capital for growth and global expansion. A SumUp spokesperson confirmed the deal is an up round, meaning its valuation is higher than it was previously.

That’s no small achievement given the state of European technology valuations, which have taken a hammering over the past year as investors flee from tech due to higher interest rates and macroeconomic headwinds.

According to venture data firm PitchBook, median valuations declined in the third quarter across all stages compared to 2022, with late-stage valuations showing the most resilience and growth-stage the least.

Earlier this year, existing shareholders in SumUp sold stakes in the firm at a heavily discounted price to its last official valuation. One, online coupons site Groupon, disclosed in a filing with the U.S. Securities and Exchange Commission that it was selling off shares in SumUp at a price that would value the company at just 3.9 billion euros ($4.2 billion).

M&A shopping spree ahead

SumUp, which competes primarily with Jack Dorsey’s payments business Block, formerly known as Square, as well as PayPal’s iZettle, FIS’ WorldPay, Stripe, and Adyen, has been expanding into new lines of business lately, not least lending. The company launched a service that enables merchant to apply for a cash advance or business loans up to a certain limit based on their card sales revenues.

SumUp secured a $100 million credit facility from Victory Park Capital this summer to bolster its cash advance offering. McKee said that the lending product has been going well so far, with the vast majority of its merchants paying back in a timely manner.

“We’re seeing quick returns on that capital, and merchants that are genuinely supporting their growth. And then they’re able to repay that back in a short time periods for the transaction volume that we see,” McKee said.

“We haven’t seen any real pullback in terms of repayment data over the course of the last six months,” she added. “Our models are constantly iterating to make sure that that those factors we’re observing don’t become stale.”

SumUp also launched new point-of-sale offerings, including self-service kiosks that let customers order in stores using a touchscreen interface.

SumUp recently launched Apple’s Tap to Pay feature in the U.K. and the Netherlands, which enables people to tap their card or phone on a vendor’s iPhone using a smartphone app. It’s also been upgrading its existing point-of-sale systems, with its POS Lite and POS Pros countertop systems that can be paired with SumUp’s card readers.

Going forward, SumUp plans to explore more merger and acquisition opportunities to help it drive its expansion abroad.

“M&A is always something that’s on the table,” McKee said. “We have expanded into new geographies in the past with M&A. That’s something we’re always assessing. We have experience in both building an ecosystem as well as buying. And both of these things are available to us, obviously, yes, this just gives us greater optionality and the ability to move quickly, should we see the right opportunity arise.”

SumUp has no immediate plans to go public, McKee added, as it has ample access to capital in the private markets.

“I think it’s proven by this round that we actually have access to private pools of capital, so we don’t need to IPO,” she said.

“We’re constantly improving processes, actually making sure that we are operating at a standard and quality that is appropriate for public markets. But at the same time, this is not something that, you know, is imminent, and around the corner that we’re actively planning for today.”

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Amazon was questioned by House China committee over ‘dangerous and unwise’ TikTok partnership

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Amazon was questioned by House China committee over 'dangerous and unwise' TikTok partnership

Amazon logo on a brick building exterior, San Francisco, California, August 20, 2024.

Smith Collection | Gado | Archive Photos | Getty Images

Amazon representatives met with the House China committee in recent months to discuss lawmaker concerns over the company’s partnership with TikTok, CNBC confirmed.

A spokesperson for the House Select Committee on the Chinese Communist Party confirmed the meeting, which centered on a shopping deal between Amazon and TikTok announced in August. The agreement allows users of TikTok, owned by China’s ByteDance, to link their account with Amazon and make purchases from the site without leaving TikTok.

“The Select Committee conveyed to Amazon that it is dangerous and unwise for Amazon to partner with TikTok given the grave national security threat the app poses,” the spokesperson said. The parties met in September, according to Bloomberg, which first reported the news.

Representatives from Amazon and TikTok did not immediately respond to CNBC’s request for comment.

TikTok’s future viability in the U.S. is uncertain. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by Jan. 19. If TikTok fails to cut ties with its parent company, app stores and internet hosting services would be prohibited from offering the app.

President-elect Donald Trump could rescue TikTok from a potential U.S. ban. He promised on the campaign trail that he would “save” TikTok, and said in a March interview with CNBC’s “Squawk Box” that “there’s a lot of good and there’s a lot of bad” with the app.

In his first administration, Trump had tried to implement a TikTok ban. He changed his stance around the time he met with billionaire Jeff Yass. The Republican megadonor’s trading firm, Susquehanna International Group, owns a 15% stake in ByteDance, while Yass has a 7% stake in the company, NBC and CNBC reported in March.

— CNBC’s Jonathan Vanian contributed to this report.

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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.

David Paul Morris | Bloomberg | Getty Images

Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.

Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.

Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.

Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.

Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.

Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.

The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.

— CNBC’s Annie Palmer contributed to this report.

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WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’

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WikiLeaks whistleblower Chelsea Manning says censorship is still 'a dominant threat'

Chelsea Manning: Censorship still a dominant threat

Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.

Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.

Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.

“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.

“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.

“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”

Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal. 

Horacio Villalobos | Getty Images News | Getty Images

Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.

“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.

‘No longer secrecy versus transparency’

Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.

She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.

Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”

She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”

Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.

“It’s no longer secrecy versus transparency,” she added.

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