London fintech firm Paddle has bagged a $200m funding injection today at a valuation of $1.4bn, making it the latest UK firm to achieve so-called ‘unicorn’ status with a value of more than $1bn.
The fresh funding for Paddle, which provides payments infrastructure for Software-as-a-Service companies, was led by investment giant KKR with support from a group of existing investorsincluding FTV Capital, 83North, Notion Capital, Kindred Capital.
Boss Christian Owens said the new funding will allow Paddle to fuel the growth of SaaS firms.
“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 localizing payment options in every market,” he said.
“Paddle was created to remove these invisible barriers so that SaaS companies can just focus on building and selling software”.
The funding comes amid a boom in funding for the SaaS sector, which has ballooned since the start of the pandemic.
Intelligence firm Gartner said it was worth $397bn in 2021 but is set to grow to $692 billion by 2025.