Funding Round attributes
Paddle, a leading Merchant of Record (MoR) for digital product companies worldwide, has raised $25 million in funding from CIBC Innovation Banking. The company provides a comprehensive suite of services, including managing payments, sales tax, refunds, fraud prevention, and compliance, for over 6,000 SaaS, AI, and app companies globally. This latest funding round will be used to accelerate Paddle’s international expansion, enhance its product development, and support the continued growth of its enterprise customers.
The funding comes after Paddle’s previous equity investment of \$293 million from notable firms such as FTV Capital, KKR, 83North, and Notion Capital. The company has experienced strong growth, driven by the increasing demand for digital products, particularly AI-based solutions. Paddle’s role as a Merchant of Record eliminates the need for businesses to manage complex and fragmented payment systems, allowing them to scale quickly and expand into new markets.
Paddle’s services simplify operations for digital product companies, streamlining their payment processes and making it easier to handle compliance in various regions. With over 6,000 customers relying on Paddle, the company has become a critical partner for businesses looking to scale their operations without the burden of managing payment systems.
The funding arrives at a pivotal time for Paddle as the company capitalizes on the rapid growth of new AI products and recent shifts in payment policies, such as Apple’s move to allow web payments. Paddle has experienced 40 percent annual growth, and the company is poised to continue expanding as demand for its services increases.
Jimmy Fitzgerald, CEO of Paddle, expressed excitement about the company’s momentum in 2025, stating that Paddle’s success is tied to the success of the companies it serves. He highlighted the significant increase in the number of consumer app businesses opting for Paddle’s services to manage web monetization. Fitzgerald also emphasized that the new funding will enable Paddle to continue investing in this growing market.
Under Fitzgerald’s leadership, who previously spent nearly a decade on ServiceNow’s leadership team, Paddle has expanded its executive team with several high-profile hires. Rich Mason has joined as Chief Revenue Officer (CRO), International, bringing experience from Shopify, where he led enterprise efforts in the EMEA region. Stephen Wilcock has been appointed Chief Technology Officer (CTO), and Ben Aronsten has been named Chief Marketing Officer (CMO). These seasoned executives will play a crucial role in driving Paddle’s growth as the company scales its operations and product offerings.
Paddle has also opened a new office in Austin, further expanding its global footprint. This is in addition to the company’s existing offices in London, Lisbon, Toronto, and New York City. The new office is part of Paddle’s broader strategy to increase its presence in key markets, ensuring that its solutions are easily accessible to digital product companies worldwide.
In 2025, Paddle expanded its product offerings with new features through partnerships with Vercel and integration with RevenueCat. These collaborations make it easier for app developers to monetize their products on the web and manage subscriptions across platforms. The recent changes in Apple’s policies in the US and EU have accelerated the shift toward web-based monetization, further driving demand for Paddle’s solutions.
With this new round of funding and a strengthened leadership team, Paddle is well-positioned to continue its growth trajectory and further solidify its place as a leader in the digital product payment and compliance space.
