Paddle, a SaaS payment firm, has secured US$25 million in funding from CIBC Innovation Banking.

The funds will support global expansion, product development, and other growth initiatives.

In 2025, Paddle saw significant growth due to the rising adoption of AI products and Apple’s app ecosystem changes that favor web payments.

It also launched new features through partnerships with Vercel and RevenueCat to support app developers in web monetization and subscription management.

Founded to simplify payments, tax compliance, and fraud prevention, Paddle currently supports over 6,000 SaaS, AI, and app companies globally.

This round adds to the US$293 million previously raised from investors including FTV Capital, KKR, and Notion Capital.

🔗 Source: Paddle

🧠 Food for thought

1️⃣ The merchant of record model gains traction amid app store policy shifts

Paddle’s growth reflects the increasing importance of merchant of record (MoR) services as app monetization strategies evolve beyond traditional app stores.

The company has seen dramatic expansion from serving 2,000 customers with $90.9 million in revenue in 2024 to now supporting over 6,000 businesses in 2025 1.

This growth coincides with significant changes in Apple’s ecosystem policies, which now allow for web-based payment alternatives in certain markets after years of maintaining strict control over in-app purchases.

Paddle’s competitive fee structure, charging 10% for transactions under $10 and 5% for transactions over $10, stands in stark contrast to Apple’s traditional 30% commission 2.

The timing of this funding round appears strategic, as developers increasingly seek payment alternatives that allow them to retain more revenue while navigating complex international tax and compliance requirements.

2️⃣ Strategic executive recruitment signals fintech competitive intensity

Paddle’s hiring of leadership from established tech companies represents a pattern of talent acquisition common in rapidly scaling fintech platforms.