Paddle raises $200 million at a $1.4 billion valuation

Paddle, a payments infrastructure for SaaS companies, today announced that it has raised a $200 million Series D at a valuation of $1.4 billion, making it the UK’s latest unicorn. The funding round was led by KKR, with participation from existing investors FTV Capital, Notion Capital, 83North, Kindred Capital, and debt financing from Silicon Valley Bank. 

The fresh funding brings the total Paddle has raised to date to $293 million. 

Paddle says the company will use the funding to strengthen the growth of its platform and to meet the market opportunity that exists for a complete payment infrastructure provider for software companies globally, which will assist in enabling them to scale and sell their products faster, with less risk and lower costs.

Founded in the UK in 2012, Paddle offers SaaS companies a payments infrastructure which integrates checkout, payment, subscription management, invoicing, international taxes and financial compliance processes. 

Christian Owens, CEO and co-founder of Paddle, said: “The opportunity in software is enormous, with tens of thousands of incredibly innovative businesses bringing great products to market every year. Unfortunately, many SaaS companies still find their growth hindered by the operational challenges that arise when scaling; from handling subscriptions management or tax compliance to localizing payment options in every market. Paddle was created to remove these invisible barriers so that SaaS companies can just focus on building and selling software. 2021 was a fantastic year for us, but we are only just getting started. We have big plans for 2022 and beyond and we’re delighted to have the backing of so many fantastic investors who all share our vision.”

The company says its payments infrastructure is currently used by more than 3,000 SaaS companies in over 200 markets worldwide. 

With a suite of new platform features and integrations – including the announcement of an alternative In-App Purchasing (IAP) system for iOS developers – as well as rapid international expansion, Paddle has more than doubled its revenue growth since November 2020, contributing to an impressive average annual revenue growth of over 175% over the last four years. It has also scaled its team from 140 to 275 across offices in London and New York, with more hires expected to match its acceleration as a business.

Patrick Devine, Director at KKR, added: “Paddle is solving a significant pain point for thousands of SaaS companies by reducing the friction and costs associated with managing payments infrastructure and tax compliance. By simplifying the payments stack, Paddle enables faster, more sustainable growth for SaaS businesses. Christian and the team have done a phenomenal job building a category-defining business in this space, and we are excited to be supporting them as they embark on the next phase of growth.”

KKR’s investment was made through its growth equity fund, Next Generation Technology Growth Fund II.