London-based payment service provider SumUp has secured €590m in a debt and equity funding round that values the firm at €8bn.

The funding comes at a time when European fintechs are hit by a global sell-off in technology companies.

The firm, which provides payments services for small merchants, was previously seeking a €20bn valuation, according to multiple sources.

Bain Capital Tech Opportunities led the funding round with participation from funds managed by BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, and Sentinel Dome Partners.

Founded in 2012, SumUp’s offerings include a free business account and card, an online store, and an invoicing solution, in addition to in-person and remote payments integrated with its card terminals and point-of-sale registers.

The firm has a team of more than 3000 employees supporting over four million businesses spread across 35 countries.

SumUp CFO Marc-Alexander Christ told Financial Times that the firm decided to go ahead with the funding round despite the lower valuation because it would provide “peace of mind to investors, that even during a black swan event . . . we can still raise money”.

According to Christ, the company doesn’t necessarily need the money as it is close to breakeven.

The new capital provides a buffer for a “rainy day” and could be used for funding further acquisitions, he added.

In February last year, SumUp scooped up Lithuanian core banking system provider Paysolut. Other recent acquisitions include Goodtill, Tiller, and the US customer loyalty site Fivestars.

In March last year, the firm secured a $893m (€750m) facility from Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and Oaktree to ramp up its growth strategy.