Payments firm Paddle becomes UK’s latest unicorn with £162m raise

Provider of payments Paddle has raised $200m (£162.2m) in a Series D funding round at a valuation of $1.4bn, making it the UK’s latest fintech unicorn.

The London-based company will use additional capital to grow the platform which offers payment infrastructure for software as services (SaaS).

Its services include tax collection, payment routing, compliance, invoicing and renewal management.

“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 localising payment options in every market,” Christian Owens is the CEO and cofounder of Paddle

Gartner predicts that the SaaS market will be worth approximately $2.5 trillion by 2020. $692bn (£561bn) in 2025.

Paddle’s Series D round was led by KKR, with the addition of previous investors FTV Capital, 83North, Notion Capital, Kindred Capital. Silicon Valley Bank provided debt financing.

Founded in 2012, Paddle is used by over 3,000 software companies and has a total investment to date of $293m (£237m).

Paddle worked with SaaS companies like Resume.io, MtionVFX, and Tailwind Labs.

Following its success, the investment was made. Series C round in November 2020, which raised £52m and was led by FTV Capital.

Recent changes have seen Paddle’s London and New York offices double its staff from 140 to 275.

KKR invested through its Next Generation Technology Growth Fund II, a growth equity fund.

“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,” Patrick Devine, Director, KKR.

Paddle follows in the steps of GoCardless in becoming a UK fintech unicorn and follows a record year for UK fintech investment.

Weavr is an embedded finance platform that Paddle faces. Its CEO and co-founder recently spoke to them. UKTN about not competing directly with banking as a service firms.

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