Merchant of record Paddle raises $25m to fuel expansion

July 18, 2025

Paddle, a leading merchant of record (MoR) platform for digital product businesses, has raised $25m.

The funding round was led by CIBC Innovation Banking, which will help finance Paddle’s expansion into new markets and the development of its product capabilities, according to a report from PYMNTS.

As a MoR, Paddle manages end-to-end payment infrastructure for more than 6,000 Software-as-a-Service (SaaS), artificial intelligence (AI), and app companies. The firm replaces fragmented payment technology stacks with a unified solution that handles payments, refunds, compliance, tax, fraud, and customer billing support.

CIBC Innovation Banking managing director for the UK and Europe Sean Duffy said, “In an ever-connected world, it’s important that digital product companies can receive payment from customers in any location without the hassle of navigating multiple payment processes in different geographies.”