Paddle Due Diligence
Run due diligence on Paddle: check compliance and get alerts when suppliers change.
UK · www.paddle.com · 29 vendors
Paddle is a Merchant of Record (MoR) that provides a complete payment infrastructure for software, SaaS, and digital product companies. It handles global payments, subscription billing, tax compliance, and fraud protection, enabling businesses to sell internationally without managing complex payment systems themselves.
Resilience scores
- Digital Sovereignty: 0
- Digital Resilience: 8
- Financial Resilience: 6
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Services catalogue
5 services in catalogue across 2 categories; runs on 29 sub-vendors.
- Paddle
- Payment Processing
- Subscription Management
Insights
Last updated 2026-08-11 · revision 2
29 direct vendors, 232 subvendors
Direct vendors by controlling owner country (sample)
- Canada: 1
- United States: 23
- Denmark: 2
Subvendors by controlling owner country (sample)
- Germany: 4
- Canada: 5
- Australia: 5
Compliance
8 in-scope frameworks identified; showing 3.
ISO 27001 (source) — No public evidence
Evidence: https://www.paddle.com/legal/soc-2-compliance, https://security.paddle.com
GDPR (source) — Evidence found
Evidence: https://www.paddle.com/legal/gdpr, https://www.paddle.com/legal/privacy, https://www.paddle.com/legal/terms, https://www.paddle.com/legal/soc-2-compliance, https://security.paddle.com
SOC 2 (source) — Evidence found
Evidence: https://www.paddle.com/legal/soc-2-compliance, https://security.paddle.com
Financials
Three-year financials
- 2022: revenue £145M, EBIT £-60M
- 2021: revenue £43M, EBIT £-25M
- 2020: revenue £25M, EBIT £-9M
Financial Resilience Score: 6/10
Paddle demonstrates moderate financial resilience underpinned by strong venture capital backing, most notably a $200m Series D led by KKR in May 2022 at a ~$1.4bn valuation, bringing total funding to approximately $293m. This provides multi-year cash runway even amid persistent operating losses. The company's Merchant of Record model creates a structural moat via global tax/VAT compliance capabilities that are operationally difficult to replicate, and its recurring SaaS customer base of 10,000+ merchants processing 190 million transactions annually provides a sticky, contractual revenue foundation. However, resilience is tempered by widening operating losses through 2022 (estimated £-60m+), driven by the ProfitWell acquisition, aggressive hiring, and the now-shelved Paddle for App Stores initiative. Two rounds of layoffs in 2023 (~15% cumulative workforce reduction) signal cost discipline pressure and possible growth deceleration. Competitive intensity has increased materially following Stripe's 2024 acquisition of Lemon Squeezy, directly compressing Paddle's MoR positioning. Additional risks include chargeback/fraud counterparty exposure inherent to the MoR model, payment scheme regulatory risk, and the absence of a publicly committed profitability timeline.
Key strengths: Strong VC backing with ~$293m raised across Seed to Series D, $200m Series D led by KKR in May 2022 at ~$1.4bn valuation providing runway, Recurring SaaS revenue base with 10,000+ customers and 190m transactions/yr, Merchant of Record model creates regulatory/compliance moat, $130m in sales taxes remitted annually demonstrates scale, ProfitWell acquisition provides top-of-funnel lead generation, Positioned to benefit from EU DMA opening iOS to third-party payments
Risk factors: Persistent and widening operating losses with no public profitability timeline, Intensifying competition from Stripe (post Lemon Squeezy acquisition), FastSpring, Payment counterparty, fraud and chargeback risk as Merchant of Record, Regulatory and card scheme (Visa/Mastercard) classification risk, Two rounds of layoffs in 2023 totalling ~15% of workforce, Growth deceleration - no public confirmation 2023 matched 2021-22 pace, Shelved Paddle for App Stores initiative after 2024 Apple/EU DMA developments
Revenue by geography
- Rest of World: 80%
- United Kingdom: 20%
Revenue by product/service
- Paddle Billing (Merchant of Record): 90%
- ProfitWell Metrics / Retain: 8%
- In-App Purchase / App Store Alternative: 2%
Workforce by country
- United Kingdom: 135
- United States: 98
- Rest of World: 67
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