What you need to know
- Paddle is a global revenue platform.
- Last year the company announced plans to offer a rival in-app purchase alternative to Apple's own system on devices like iPhone and iPad.
- The company has raised $200m in a recent round of funding and is now valued at $1.4bn.
Paddle, a revenue platform with aspirations to rival Apple's in-app purchase methods on devices like the iPhone has this week announced that it has raised $200m in funding and is now worth $1.4 billion.
In a press release Tuesday the company stated:
Today, we're excited to announce our $200m in Series D financing at a valuation of $1.4bn – making Paddle the UK's latest unicorn.The round was led by KKR, a leading global investment firm, with participation from our existing investors FTV Capital, 83North, Notion Capital, Kindred Capital and debt financing from Silicon Valley Bank, and brings the total we've raised to date to $293m.
Paddle is a complete payment platform infrastructure for software companies, helping them scale and manage anything from subscriptions and tax compliance to local payment options.
The company is noteworthy to users of products like Apple's best iPhones because last year it announced plans to offer a rival in-app purchase method for developers that could give them a way different way to sell apps and in-app purchases to users, if the law allows, that is.
In October the company announced the first-ever alternative in-app purchase system for iOS developers as a direct response to the ruling in the Apple vs Epic Games lawsuit, where the Fortnite-maker is seeking to break open Apple's App Store to allow alternative payments that would mean depriving Apple of the 15%-30% cut it takes on revenue in the store.
Paddle's IAP alternative didn't seem to be on a firm legal footing at the time, antitrust litigation expert Florian Mueller told iMore the injunction granted by a court against Apple "doesn't have scope for this approach."
Paddle told us its own understanding was that its IAP product "is permissible" within the legal ruling but said it would welcome Apple's own interpretation on the matter. The injunction granted against Apple, and indeed the whole case between Apple and Epic, now rests with the appeals court, with both sides taking issue with the rulings against them.
Paddle's headline offering (should it ever makes its way to Apple devices) is a lower commission rate of 10% on transactions of less than $10, and 5% + $0.50 on transactions of more than $10, as well as increased customer support and subscription management capabilities which developers don't currently have. The company's website states "The Epic Games v. Apple verdict clears the way for app creators to choose an alternative to Apple's payment system and its 15-30% fee."
