Paddle raises $25M to accelerate growth and international expansion

Paddle, the leading Merchant of Record for digital product companies globally, has raised $25 million from CIBC Innovation Banking and noted a series of other strategic updates, including key executive hires and the opening of a new Austin office. The funding will be used to support Paddle’s continued global expansion, accelerate growth, and drive rapid product development to further support its enterprise customers. 

This follows $293 million in previous equity investment from leading firms including FTV Capital, KKR, 83North, and Notion Capital.

Acting as a Merchant of Record (MoR), Paddle manages payments, sales tax, refunds, fraud prevention, and compliance for over 6,000 SaaS, AI, and app companies, eliminating the need for a complicated and fragmented payment setup. 

By streamlining operations, Paddle enables businesses to scale more quickly and enter new markets with ease. 

This funding arrives at a crucial time, as Paddle sees strong growth in 2025, fuelled by the rise of new AI products and Apple’s shift toward allowing web payments. Building on 40 per cent annual growth, this marks Paddle’s growing momentum in the digital product space.

Jimmy Fitzgerald, CEO at Paddle, said: 

We are incredibly excited about the momentum Paddle has experienced so far in 2025. We only win when those we serve win, and the growth we’re seeing across the market reflects that shared success.

We are seeing a huge increase in the number of consumer app businesses choosing Paddle to manage their web monetization, and will continue to invest in this space with the new financing and strengthened leadership. We look forward to building on these achievements through the rest of the year and beyond as we continue to serve thousands of digital product companies worldwide.

Under the leadership of CEO Jimmy Fitzgerald, who spent nearly a decade on ServiceNow’s leadership team, Paddle has also welcomed several seasoned executives to its team, including Rich Mason as CRO, International, formerly Head of Enterprise, EMEA at Shopify; Stephen Wilcock as CTO, a multi-time CTO at scaling tech companies in Europe, and Ben Aronsten as CMO, who previously led global marketing at Intercom and served as Director of Marketing, EMEA at Shopify. 

These senior hires bring extensive expertise to Paddle’s 300+-strong team across offices in London, Lisbon, Toronto, New York City, and now Austin, following the opening of the new office.

Sean Duffy, Managing Director of CIBC Innovation Banking UK & Europe, said:

We are delighted to fund Paddle as it continues on an impressive growth trajectory. In an ever-connected world, it’s important that digital product companies can receive payment from customers in any location without the hassle of navigating multiple payment processes in different geographies. We are excited to support Paddle as it continues expanding its global footprint.

In 2025, Paddle expanded its product offering with new features through a partnership with Vercel and integration with RevenueCat, making it easier for app developers to monetise on the web and manage subscriptions across platforms. 

Recent Apple policy changes in the US and EU have further accelerated the shift toward web-based monetisation, boosting interest in Paddle’s solutions as digital product companies seek new revenue opportunities.

Lead image: Paddle