I’m excited to share that FTV Capital led a $68 million funding round for Paddle, a revenue delivery platform for B2B Software-as-a-Service (SaaS) companies. This well-timed growth equity investment will drive further expansion in the US and globally, as well as further investments in the company’s product, engineering, sales and marketing teams.
We were inspired by Paddle’s story. Co-founders, Christian Owens and Harrison Rose, founded the company in 2012 with the vision of a holistic, complete infrastructure to help software companies sell their products. In less than a decade, their team has grown to 140 employees and their Revenue Delivery Platform now serves over 2,000 software companies in 245 countries and territories globally. Paddle has seen incredible demand to date, recording an average annual revenue growth of over 175% over the last four years and doubling in the last year alone.
The SaaS market is predicted to be worth over $105 billion in 2020. Yet, while many SaaS companies have recently seen demand surge because of an increased reliance on digital products during the pandemic, they’re also facing unprecedented competition pressed by rising customer acquisition costs, a struggle to maintain customer loyalty, and limiting existing revenue delivery infrastructure—which is where Paddle comes in. Paddle’s Revenue Delivery Platform combines checkout, invoicing, payments and tax compliance. With unified customer acquisition, renewal and expansion, companies are finally able to transform their revenue delivery infrastructure into a strategic growth lever to respond faster and more precisely to every growth opportunity.
This investment ties together two areas FTV Capital has been deeply focused on over the years – payments and SaaS – allowing us to turn decades worth of experience into effective and immediate solutions for companies like Paddle. By leveraging this deep sector expertise and our strategic Global Partner Network, we’re committed to helping Paddle scale and expand its already impressive growth, while furthering product and human capital investments.
We believe Paddle’s model is defining a new category for the sector, which is critical to helping companies adapt to change while empowering them to take advantage of the huge acceleration in demand for digital products.
I am excited to join Paddle’s board of directors and partner with Christian, Harrison and the entire Paddle team to forge this incredible path forward. And FTV is committed to offering Paddle the best of our 22+-year market experience, making strategic commercial introductions to members of our Global Partner Network, and supporting their development by leveraging our in-house operational Propel team. Congratulations to the Paddle team — we could not be more honored and privileged to be part of your exciting journey ahead.
