The Shoreditch-based payments company, Paddle, saw a significant increase in losses in 2022, amounting to over £34 million. This rise in losses was attributed to the company’s focus on upgrading its product to cater to “upmarket developers,” as disclosed in its latest filings.

Established in 2012 by CEO Christian Owens at the age of 18, Paddle specializes in providing payments, tax, and compliance services to software businesses. Despite its rapid growth, with the revenue nearly doubling to £49.0 million in 2022, a substantial portion of its earnings, £33.2 million, came from markets outside of Europe, while a mere £3.0 million was generated from the UK. Revenue from the rest of Europe totalled £12.8 million.

The company’s expenses, primarily driven by continued investment in product development, soared as it sought to enhance its billing and subscription management to better serve “upmarket developers” who utilize Paddle for their software-as-a-service products. This ultimately led to a loss of £34.2 million.

Paddle’s focus remains steadfast, with an emphasis on augmenting the depth and complexity of its offerings while ensuring the necessary security and compliance measures are in place to meet the expectations of its global clientele. This approach is aligned with its strategy to uphold its position as a leading provider of services within the industry.

The company’s workforce also experienced significant growth, with the number of employees exceeding 284 by the end of the year. In a strategic move to secure additional funding for its expansion plans, Paddle successfully secured a £162 million investment from US private equity firm KKR, valuing the company at £1.1 billion.

Notably, CEO Christian Owens, who displayed his entrepreneurial acumen by founding his first internet company at the age of 14, was recognized as a member of the prestigious Forbes 30 under 30 in 2016. Additionally, he is a recipient of the Thiel Fellowship, a distinguished two-year entrepreneurship program established by renowned investor Peter Thiel.

Paddle’s commitment to enhancing its product offerings and expanding its global footprint underscores its unwavering dedication to meeting the evolving needs of the software business marketplace. Despite the financial setbacks in 2022, the company’s long-term vision and pursuit of excellence continue to guide its trajectory towards sustained growth and success.