SumUp acquires core banking fintech Paysolut
SumUp was founded in 2012 and supplies card terminals which are used by more than three million businesses globally. In 2019, the company also surpassed an annual revenue of €200mn.
Paysolut has been a partner of Paysolut for the past two years. The Baltic startup launched in 2017 in Vilnius and helps make cross-border, P2P, and P2M payments simple, enabling businesses to save money and launch faster by acting as the single vendor for the software, partnerships, and an interim payments institution license.
The acquisition is one of the latest steps in a series of strategic agreements SumUp has entered into to strengthen its product portfolio, including core banking and BaaS proposition, and to penetrate markets driven by small retailers.
In the past 24 months, the company has acquired several startups including Debitoor, Shoplo and Goodtill. In 2019 SumUp was also granted an electronic money institution license by the decision of the Board of the Bank of Lithuania and has invested heavily into growing its presence in Lithuania and its office in Vilnius.
Business as usual for Paysolut
Paysolut’s strong portfolio of services which helps fintech companies to save money and launch faster into the financial services market, won’t be affected by the acquisition.
According to both parties, Paysolut’s daily operations or strategy will remain as they are, and management will maintain operational independence.
However, SumUp’s will support the company, enabling it to expand its team and “offer a new level of quality products” with a more global reach. Spokespersons for SumUp explained that the acquisition of Paysolut will develop better technology-based banking solutions.
The idea for SumUp was conceived in 2011 and realised a year later when investors including American Express, BBVA Ventures and Groupon threw their weight behind the enterprise. Initially, the operation was based in Berlin, later on moving to London.
SumUp now operates in 32 markets worldwide and serves an estimated three million customers. Paysolut came on board as a partnership company to provide core banking solutions to SumUp’s growing network of users.
The company enables businesses of all sizes to receive payments quickly and easily, both in-store and online. Named as Europe’s fastest-growing company in the ‘Inc. 5000’, SumUp has over 7,000 companies joining the platform every day.
It is hoped the acquisition will enable both companies to create a new level of products and operate at a greater capacity.
Dimitri Gugunava, Tribe Lead – Merchant Bank at SumUp, explained, “The main rationale of the deal is simple and strategy-driven, we want to keep building high-quality technological solutions in banking together. We are extremely happy that we could come to an arrangement with Paysolut and hope together we can create great value for our customers.”
The deal will expand the reach and capacity of Paysolut, enabling them to significantly increase their market potential. “The goal of each company is to grow and expand their services and markets,” said Vytenis Pavalkis, co-founder, and CEO of Paysolut.
He continued, “Becoming a significant part of a global player like SumUp gives us the opportunity not only to strengthen our products but also to present them to a significantly larger number of customers worldwide. We are happy that solutions created in Lithuania will become more important in the world. This also presents a tremendous opportunity for Paysolut current and future team members to grow and learn together with SumUp.”
Payment startup Mollie raises US$800m at a $6.5bn valuation
Mollie, one of the fastest-growing payment processors within Europe, today announced it has raised US$800m in a Series C funding round, now valuing the company at $6.5bn. The valuation, based on Dealroom data, makes Mollie the third most valuable privately-held European fintech behind Klarna and Checkout.com.
Blackstone Growth (BXG), Blackstone’s growth equity investing business, led the investment and included participation from EQT Growth, General Atlantic, HMI Capital and Alkeon Capital. TCV who led the Series B investment in September 2020 also participated in the funding round.
According to the company, the funding will fuel Mollie’s international expansion, team scaling, and continued investment in product and engineering.
“There’s something very special about Mollie. In the three months since I joined the team we’ve achieved so much: making preparations for a full launch in the UK, driving 600% growth in Germany and hiring an impressive set of team members and executives,” said Shane Happach, CEO, Mollie. “Over the past months, Mollie has been receiving a remarkable amount of interest from some of the world’s foremost fintech investors. In bringing on BXG, we believe we have an investor who can help Mollie in our next phase of growth. The involvement of our new group of investors demonstrates confidence in Mollie’s growth, strategy and product set.”
The Amsterdam-based business was launched in 2004, and is one of the largest PSPs in Europe. Today, it serves more than 120,000 monthly active merchants of all sizes across the continent. During 2020, Mollie processed more than 10 billion Euros in transactions and is on track to handle more than 20 billion Euros during 2021.
“Mollie is one of Europe’s most exciting high-growth businesses and is at the forefront of enabling next-generation payments for online SMEs across Europe. We are excited to partner with Mollie’s fantastic team and look forward to leveraging Blackstone’s capital, expertise and global network to unlock the company’s next phase of growth,” said Paul Morrissey, who leads European investing for Blackstone Growth. “This investment underlines Blackstone’s confidence in Europe as a place for high-growth companies to thrive.”
In Europe, FinTech app usage grew by 72% directly after the pandemic outbreak, while the top seven digital banks in the US grew their cumulative user base by 39% throughout the year. Competition in payments has grown over the past few years with fintech players like Stripe, Square and Netherlands-based Adyen all competing for a bigger share of the market.
Unlike its American rivals, Mollie says it mainly focuses on transactions with small businesses in Europe. Shane Happach, CEO of Mollie said: “A lot of the bigger players in online payments come out of the US, like PayPal,”. Adding that even Visa and Mastercard are US companies.
“A lot of investors don’t have a bet on Europe,” Happach said. “Mollie’s one of those unique assets that offers exposure.