U.K.-based payments startup SumUp announced a new round of funding today. While the amount remains undisclosed, SumUp CEO Daniel Klein confirmed that the company has now raised a total of $45 million in funding since it was founded in 2012.
According to TechCrunch, Klein estimates the company is now valued somewhere in the range of “healthy hundreds of million” euros.
The newest round comes from Venture Incubator AG, a firm that includes ABB, Bühler, Credit Suisse, Hilti, Nestlé, Novartis, Schindler, SUVA, Sulzer and ZKB. This list of heavy-hitters should come as no surprise, since SumUp’s earlier rounds were led by American Express, Groupon, BBVA and other renowned venture-capital firms.
SumUp’s mobile point-of-sale system includes Chip & PIN as well as EMV processing technology, available on Android and iOS mobile apps. The company will use the funding in two ways:
1) Focus on contactless payment hardware.
SumUp differentiates itself by being as vertically integrated as possible. That means that it designs all of its own hardware, and does not rely on third parties. The company sells its terminal for around $90, and considers the hardware to be one of its competitive advantages. Says CEO Klein, “We’ve reached a competitive point in this respect for us to be able to produce terminals at a cost that is lower when we sell it. We are already making a profit on our hardware and continue to do so.”
2) Expand its geographical reach.
SumUp currently operates in 13 countries, and will add two more this year, one of which will be Sweden.
SumUp reported 300,000 merchant customers as of last month. In the last six months, sales volume has doubled on the platform. The startup plans to be profitable by next year.
The company launched at FinovateEurope 2013 in London where it won Best of Show for its portable card reader and point-of-sale solution.