UK-based Paddle, an ecommerce platform for software companies, has raised $3.2 billion in Series A funding. BGF Ventures led the round with participation from Spring Partners.
Paddle, the eCommerce platform for software businesses, today announces Series A investment of $3.2 million, led by BGF Ventures with participation from Spring Partners.
Software is so powerful because it transcends borders. In theory, a new software product can be shipped to a global audience immediately.
In reality, selling internationally can be a real pain: customer acquisition, payment method integration, currencies, localisations, customer service and sales taxes. Spending time on this means less time building amazing products.
Paddle makes it easy to sell to customers worldwide, handling sales tax and supporting a range of payment methods, including all major credit cards and PayPal, in addition to fraud prevention and checkout recovery. While reducing burden for sellers, Paddle increases seller revenues through analytics and customer feedback.
“As a developer myself, I didn’t want to have to deal with all of these distractions, I just wanted to build software,” says Christian Owens, Paddle’s founder. “We know that this is a common problem for software businesses. We created Paddle to give them the tools they need so that they can have a first-class eCommerce operation and concentrate their efforts on making great products.”
Owens, who founded Paddle in 2012, is a 2016 Thiel Fellow – the only one in the UK – and started his first business aged 14. The London-based team of 16 has an average age of 27 and draws on experience from companies including Greenhill and PwC. The company’s first backers were Mark Pearson, founder of MyVoucherCodes, and Mark Evans.
The company has grown at 350-400% a year for the last three years so Owens says the priority following this new investment will be to invest in engineering and customer support to maintain that growth. There are currently around 400 businesses using Paddle, processing around one million transactions every year.
Paddle’s customers are small and medium sized software businesses with revenues of up to around $20m per year. In aggregate these businesses have revenues of well over $10bn per year and are not really targeted by other eCommerce platforms.
“We haven’t done any marketing at all so far,” says Owens. “Our growth to date has been from referrals, word of mouth and a small sales team. We’re hoping to scale up our sales and marketing efforts with this funding.”
Harry Briggs, of BGF Ventures, said: “Paddle provides a complete suite of integrated tools that I think of as ‘Shopify for software’. If you’re a software business that wants to scale globally fast, Paddle helps you grow faster. To put it crudely, in the software goldrush, we believe Paddle makes the best shovels, or, er, paddles.