This Paddle company profile covers the company's valuation, revenue, funding rounds, investors and history. Paddle works in fintech, with a focus on payments for software companies. It was founded in 2012 and is headquartered in London, United Kingdom. Its latest valuation on record is US$1.4 billion (May 2022). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.
Revenue
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| May 2022 | Series D | US$200M (equity and debt) | US$1.4B | KKR (lead); FTV Capital, 83North, Notion Capital, Kindred Capital; debt from Silicon Valley Bank | Tech.eu |
Paddle timeline
Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.
- 2012 — Paddle is founded in London by Christian Owens and Harrison Rose.
- May 2022 — Series D: US$200M (equity and debt), valuing the company at US$1.4B. Investors: KKR (lead); FTV Capital, 83North, Notion Capital, Kindred Capital; debt from Silicon Valley Bank.
Investors
Overview
Paddle handles payments, tax and billing for software companies by acting as their "merchant of record". In a normal online sale, the software company is the seller: it must process payments, calculate and remit sales taxes or VAT in every country where it has customers, handle refunds and chargebacks, and comply with local rules. With Paddle, Paddle itself becomes the legal seller. It sells the software to the end customer, takes on tax and compliance obligations, and pays the software company its share. For small and mid-sized software businesses selling globally, this removes a large administrative burden.
Paddle was founded in London in 2012 by Christian Owens and Harrison Rose. In May 2022 it announced a US$200 million Series D of equity and debt led by KKR at a US$1.4 billion valuation, according to Tech.eu, bringing total funding to US$293 million. The same year it acquired ProfitWell, a subscription analytics company. The valuation dates from 2022.
Products
- Paddle Billing: subscription billing, checkout, invoicing and pricing localisation.
- Merchant of record: Paddle acts as seller, handling global sales tax, VAT and compliance.
- Payments: cards, PayPal, Apple Pay, Google Pay and local methods.
- ProfitWell Metrics: subscription analytics, now part of Paddle.
- Retain: tools to recover failed payments and reduce cancellations.
- App store alternatives: web checkout options for mobile app developers.
Funding
Paddle raised early funding from investors including Kindred Capital, Notion Capital and 83North, followed by a Series C led by FTV Capital in 2020. In May 2022 it announced a US$200 million Series D led by KKR's Next Generation Technology Growth Fund II, with FTV Capital, 83North, Notion Capital and Kindred Capital participating and debt financing from Silicon Valley Bank. The round valued it at US$1.4 billion and brought total funding to US$293 million.
Business model
Paddle charges a percentage of each transaction plus a fixed fee, which is higher than a basic payment processor's fee because it includes tax handling, compliance and fraud protection. Software companies trade a slightly higher fee for not having to register for taxes in many countries or build billing infrastructure. Revenue grows with customers' sales volumes.
Competition
Paddle competes with other merchant-of-record providers such as FastSpring, Lemon Squeezy (acquired by Stripe) and 2Checkout (Verifone); with payment and billing combinations such as Stripe plus Stripe Tax; and with billing platforms such as Chargebee, which connect to multiple payment gateways. Its focus on software companies and full merchant-of-record service sets it apart.
Paddle at a glance
Paddle is a London payments company founded in 2012 by Christian Owens and Harrison Rose. It acts as merchant of record for software companies, handling payments, global sales tax, billing and compliance. It raised a US$200 million Series D led by KKR at a US$1.4 billion valuation in May 2022 and acquired ProfitWell that year.
Timeline
- 2012: founded in London.
- 2014–2019: grows among independent software developers and SaaS companies.
- 2020: raises a Series C led by FTV Capital.
- May 2022: raises US$200 million at US$1.4 billion; acquires ProfitWell.
- 2023–2026: launches Paddle Billing and tools for app developers selling outside app stores.
What merchant of record means
The merchant of record is the entity legally responsible for a sale. It appears on the customer's bank statement, is liable for collecting and remitting sales taxes, handles refunds and disputes, and must comply with consumer protection rules. For a small software company selling to customers in 100 countries, being merchant of record means potentially registering for VAT or sales tax in many jurisdictions, filing returns and tracking changing rules, which is costly and time-consuming. By taking on this role, Paddle lets software companies focus on their products. The trade-off is less control over the checkout experience and higher fees than using a payment processor alone.
Global tax complexity
Digital services face complex tax rules. The EU requires VAT on digital sales to consumers based on the customer's location. Many US states require sales tax on software after certain sales thresholds. Other countries, including the UK, Australia, India and Japan, have their own rules for digital services. Rules change frequently, and penalties for non-compliance can be significant. This complexity is a major reason merchant-of-record services have grown.
App store alternatives
Mobile app developers have historically had to use Apple's and Google's in-app payment systems, paying commissions of up to 30%. Legal and regulatory changes in the US and EU have increasingly allowed developers to direct users to web checkouts. Merchant-of-record providers like Paddle offer tools to sell subscriptions on the web, potentially at lower cost. This could become an important growth area.
Who funds Paddle
Paddle's investors include KKR, which led its Series D, along with FTV Capital, 83North, Notion Capital and Kindred Capital.
Who uses Paddle
Paddle's customers are mainly software companies, from independent developers to SaaS businesses with tens of millions in revenue, plus app developers and digital product sellers.
Valuation context
Our guides to the largest UK startups and the largest private fintech companies compare Paddle with peers.
Risks
- Dated valuation: the last priced round dates from 2022.
- Competition: Stripe and others offer competing tax and billing tools.
- Fee pressure: larger customers may outgrow merchant-of-record fees.
- Regulatory exposure: acting as seller brings compliance responsibilities.
Questions for software companies
- How many countries do you sell into, and what would tax compliance cost you directly?
- How do Paddle's fees compare with processor fees plus tax and compliance costs?
- How much control do you need over checkout?
- Can you migrate subscriptions easily if you outgrow it?
A typical customer
A small software company in Portugal sells a design tool to customers in 80 countries. Without a merchant of record, it would need to register for VAT in the EU and UK, track sales tax thresholds in US states and handle chargebacks itself. With Paddle, the checkout shows local currency and taxes, Paddle collects payment and taxes, files and remits them, handles disputes and pays out net revenue monthly. The company's two founders spend their time on product and marketing rather than tax filings. As the company grows, it can compare Paddle's fees with the cost of handling these obligations in-house.
What to watch
Watch for new funding, growth of web checkout for app developers, competition from Stripe and profitability.
Takeaways
Software companies can sell globally without managing tax and compliance. Founders can see how taking on complexity for customers creates a business. Investors should treat the 2022 valuation as dated.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What does Paddle do?
Paddle is a fintech / payments for software companies company headquartered in London, United Kingdom. It was founded in 2012.
What is Paddle's valuation?
Paddle was valued at US$1.4 billion as of May 2022, according to Tech.eu. Private company valuations are set at funding rounds or share sales and can change significantly between them.
How much revenue does Paddle make?
Paddle is a private company and has not publicly disclosed its revenue. Figures on third-party sites are usually modelled estimates rather than numbers reported by the company.
What was Paddle's latest funding round?
The most recent financing we have verified is a series d in May 2022: US$200M (equity and debt), at a valuation of US$1.4B. Source: Tech.eu.
Who are Paddle's investors?
Investors named in public announcements include KKR, FTV Capital, 83North, Notion Capital and Kindred Capital.
Who founded Paddle?
Paddle was founded in 2012 by Christian Owens and Harrison Rose.
Is Paddle a public company?
No. Paddle is a private company (private, venture backed), so its shares are not traded on a stock exchange and it isn't required to publish its financial results.
Where is Paddle headquartered?
Paddle is headquartered in London, United Kingdom.