London-based startup Paddle helping SaaS companies grow raises £52M
Paddle, a UK startup offers software companies a single platform for the entire software sales process, helping them run and grow their business, has raised $68 million (approx £52 million) in Series C funding.
The funding round was led by FTV Capital, along with the participation of Kindred Capital, Notion Capital, and 83 North. To date, the company has raised $93 million (approx £72 million).
How will the funding be used?
The funding will be used to expand the company’s operation into the US and globally, as well as further investments in the company’s product, engineering, sales, and marketing teams.
Founded by Christian Owens and Harrison Rose in 2012, Paddle aims to replace a fragmented ecosystem of specialised tools with a unified platform that removes the complex burden that comes with running a software business.
Christian Owens, CEO, and co-founder of Paddle said: “The beauty of the SaaS model is that if you build a great product, you can sell it to anyone, anywhere in the world. Unfortunately, it is rarely that simple. We created Paddle because we’ve seen first hand the things that limit the growth of a SaaS company often have very little to do with the quality of your product. Dealing with payments, managing subscriptions, localising checkouts in multiple languages, and handling tax and compliance across dozens of markets is hugely complex and each of these challenges makes it harder for businesses to scale quickly. Our Revenue Delivery Platform has been built to remove all of this friction for B2B SaaS companies, empowering them to increase NDR by responding faster to every growth opportunity. We’re excited to continue our own growth with this investment and look forward to maintaining momentum in the months and years ahead.”
How Paddle was born?
Christian founded Paddle from his bedroom in Corby, United Kingdom. As a software and app developer, he encountered the frustrations of selling software globally and decided to do something about it. And thus born Paddle.
Stuck trying to force-fit integrations
According to the UK company, right now, the existing revenue delivery infrastructure isn’t ready for the scale and ambition of today’s software companies, and businesses are stuck trying to force-fit integrations between legacy payment gateways, billing engines, subscription management tools, and multiple taxes, compliance, and data governance systems. This is a huge drain on time and resources that can severely limit SaaS companies’ ability to scale.
How Paddle’s Revenue Delivery Platform benefits companies?
Paddle’s Revenue Delivery Platform makes it easy for SaaS companies to respond faster and more precisely to every growth opportunity for their business.
A single unified platform, Paddle integrates checkout, payment, subscription management, and financial compliance; meaning sellers on the platform can activate new business models instantly, enter new markets with ease, turn on new offerings with one-click, and enable friction-free renewals.
According to the company, this modern approach to revenue delivery empowers CEOs to make informed business decisions quickly and confidently and frees up teams to focus on the core business rather than operational headaches.
Annual revenue growth of over 175%
The London-based company Paddle recorded average annual revenue growth of over 175% over the last four years and doubling in the last year alone.
Currently, the UK startup Paddle has 140 talented employees serving over 2,000 software sellers in 245 countries and territories globally.
Kyle Griswold, partner, who led the investment for FTV Capital, added: “We are witnessing a systemic shift within the software, with the ‘growth at any cost’ mindset gradually being replaced by a realisation that businesses must scale more efficiently and with a clearer purpose. We’ve been extremely impressed with Christian and Harrison’s ambition and Paddle’s growth to date and we believe they are defining a new category with Paddle’s Revenue Delivery Platform — one that will be critical to helping companies adapt to change while empowering them to take advantage of the huge acceleration in demand for digital products. With more than two decades investing in the SaaS and payments sectors, FTV will bring the best of our domain expertise to accelerate Paddle’s exciting growth.”