adyen lost $13 billion in market capitalization last month when investors rushed to sell shares after the payments company missed its quarterly revenue targets. But it is not the only one that music faces in fintech. Actions in Resumea privately held European payments technology company that focuses on point-of-sale transactions, are currently being sold in internal sales (to other existing investors in the company) at a valuation that could be as low as $4.1 billion: a fall. up nearly 52% from SumUp’s previous valuation of $8.5 billion, achieved when it raised $624 million in June 2022.
Several SumUp investors are selling shares, but the news was made public by only one: Groupon, which is listed on the US Nasdaq, disclosed the transaction in a filing with the SEC. Is 8-K form He noted that the stock purchase deal, made on Oct. 6, represents 9.4% of the company’s 2.3% stake in SumUp. The sale, he said, would net Groupon 8.4 million euros, or about $8.9 million.
The class of shares being sold is not made public, hence the question mark over SumUp’s resulting total valuation.
“The purchase agreement was entered into in connection with a transaction in which several other SumUp investors also agreed to sell shares on the same economic terms as the company,” the document states. Groupon said it expects the transaction to close on Oct. 23 and that the buyers are other existing shareholders.
SumUp, which has its roots in Berlin, is headquartered in Luxembourg and offers point-of-sale technology and related business services. In addition to Groupon, SumUp has around 35 investors, including Bain, BlackRock, Global Founders Capital, Oaktree, Amex and BBVA.
SumUp confirmed the secondary transaction to TechCrunch but declined to comment on the valuation. In a statement, it also said that SumUp investors “continue to support SumUp through additional investments.”
He declined to say whether there would be more equity financing in the future; the company Announced a $100 million line of credit in August from Victory Park Capital to develop a cash advance product for merchants.
“Our shareholders occasionally negotiate among themselves and can set a share value according to their needs at the time of negotiation. “Small secondary transactions between existing shareholders are often not representative of the true value of the company, especially when different classes of shares change hands,” a spokesperson said. “The global investment community, as well as SumUp’s existing investors, recognized our ability to scale and our notable long-term prospects and continue to support SumUp through additional investments. “We cannot comment on the buyer of the shares at this time.”
In general, the fintech market has not been spared from the drop in financing that has affected the technology industry. Investigation of Tracxn found that in the third quarter total funding in the UK (the fintech capital of Europe and therefore an indicator of how fintechs are doing as a whole) fell by 77%, to 279.1 million dollars, compared to $1.2 billion the previous year, without any round breaking the barrier. Among them there is a 9-figure brand and there are no newly minted “unicorns”. Payment startups, along with insurance and remittance companies, stood out as the best performers, he added.
The market has seen other valuation cuts among fintechs that are still private. Among them, Stripe in the United States halved its valuation to $50 billion earlier this year. And in Europe, Checkout.com, once valued at $40 billion, reportedly It now has an internal valuation of less than $10 billion.
As for Groupon, in late March, the Chicago-based local bargain marketplace appointed a new CEO from the Czech Republic, Dusan Senkypl, whose company had become the company’s majority shareholder. Groupon has fared better since then: When Senkypl took over, the company had a market capitalization of just $103 million. Today, it has rebounded to more than $300 million. But it hasn’t fared well thanks to today’s depreciated share sales: the shares fell more than 35% in the news trade.
