SaaS Platform Paddle Valued at $1.4B Following $200M Series D

British Software-as-a-Service (SaaS) payments infrastructure platform Paddle has raised $200 million in a Series D funding round that values the company at $1.4 billion, according to a company press release website Monday (May 9).

Paddle Co-Founder and CEO Christian Owens said in the release the company will use the investment to build its platform and “meet the market opportunity that exists for a complete payment infrastructure provider for software companies globally.”

Owens noted that SaaS companies are seeing sustained growth following the pandemic, a trend he said will continue as businesses and consumers embrace digital tools like Zoom and Canva. He said the SaaS industry — worth $397 billion last year, per the release — is expected to reach $692 billion in 2025.

“SaaS companies now have an incredible opportunity to compete and sell their products in any market in the world, but to do so they must also manage payments and operations across multiple geographies and navigate an increasingly complex web of local and international tax and data regulations,” Owens said in the release.

See also: Software Revenue Platform Paddle to Compete Against Apple’s in-App Purchases

Paddle offers SaaS firms a “different approach to payments infrastructure” by integrating checkout, payment, subscription management, invoicing, international taxes and financial compliance processes, Owens said in the release.

PYMNTS spoke to Owens last year about the challenges facing businesses that want to make B2B transactions look and feel more B2C.

Read more: B2B Customers Now Expect a B2C-Like Seamless Purchasing Experience

For one thing, as businesses begin selling in more places, they might discover buyers want to pay in different ways, leading to an operational burden. There’s also the cost of complying with a host of different regulations in different countries.

“Suddenly, to sell in 100 different countries, you’re dealing with 10,000 different permutations of these different things,” Owens said.

Lastly, there’s the risk that by trying to solve the first two challenges on its own, a business can end up using several different solutions, giving itself another burden.