SumUp, Square, PayPal / iZettle and other European-based competitors, providing mobile-powered card readers and other sales technologies to merchants and small businesses, making acquisitions in the United States and digging deeper into the market. Expanded the types. Of the services it provides to customers around the world.
The company has acquired Five starsProvides loyalty, marketing, payments, and other services to small merchants used by approximately 70 million consumers and 12,000 businesses in the United States. London-based SumUp said it will pay San Francisco startups $ 317 million in cash and stake.
This is a rise in the reputation of startups as a private sector.according to PitchBook, FiveStars — Originally incubated at Y Combinator and later backed by VCs including Salt Partners, Lightspeed, DCM Ventures, Menlo Ventures, and Harbor Vest Partners — Finally, it was valued at $ 285 million. $ 52.5 million Series D a year ago, October 2020.
It’s unclear why the Five Stars are sold out, aggressively approached, or looking for buyers, but I have to wonder what the impact was on last half when many people stopped shopping. I don’t get it. The pandemic person was involved in the company’s business — it is primarily based on face-to-face transactions.
Even more positive, SumUp’s purchase of Fivestars shows how people and merchants can double their opportunities in the future. that is Return to the physical shopping fold.
SumUp started with year 2012 As one of the many Square clones that emerged from Europe at a time when US companies had not yet expanded outside the domestic market. Since then, it has diversified into the online payments, billing and other services required by merchants and other small businesses. And it has grown.Currently, the company has more than 3 million merchant users in 34 markets, and the size is Helped raise nearly $ 900 million in debt Earlier this year, we will promote further expansion.
The money is being used both to continue building SumUp’s platform and footprint in existing markets and to move into new territories.
SumUp has theoretically been active in the United States for two years, but its presence is modest, admitted by Andrew Helms, US managing director of SumUp. Therefore, this acquisition (SumUp is the first in the country) will be used to build a deeper foothold in the market.
Fivestars is a popular product, and SumUp expands its unique relationship with merchants by leveraging existing businesses that drive over $ 3 billion annually and 100 million transactions, according to Fivestars. I especially want to sign up for SumUp’s own card reader. Other sales technologies. Helms has confirmed that it plans to maintain the Fivestars brand for now and integrate its products more closely with the SumUp platform.
Victor Ho, co-founder and CEO of Fivestars, will continue with the company’s other science fiction-based teams.
“We founded Fivestars to give small businesses the opportunity to thrive in the digital economy, and we’ve achieved that for years,” Ho said in a statement. “Understanding that SumUp shares this mission, it was an easy decision to partner with, and we look forward to working together to support the retail market that drives the success of SMEs. . “
Getting a Five Star also makes a lot of sense in the context of how SumUp has grown. Part of that strategy is always to pursue inorganic expansion, Integration with Payleven, Another Square clone originally cultivated by the Berlin Rocket Internet.And buy Shoplo integration Provides merchants with the ability to sell online in multiple marketplaces.
In particular, SumUp has never had a loyalty product, so we have the opportunity to introduce Fivestars technology for the first time in other markets outside the United States, such as Europe and Latin America, where SumUp is already active.
European point of sale provider SumUp acquires customer loyalty startup Fivestars for $317M – TechCrunch Source link European point of sale provider SumUp acquires customer loyalty startup Fivestars for $317M – TechCrunch