The company
Hesse.ai is the tool transforming the way students learn.
Their flashcards help students level up their revision and learning, while Write functions as a copilot for all essays and assignments.
Here’s how they conquered their global growing pains with Paddle…
The challenge
Having developed a product worthy of student attention across the globe, it was only a matter of time before Hesse.ai attracted international interest.
New sales were coming in from different countries and this brought with it a novel challenge: exceeding sales tax thresholds in different territories.
The team was using Stripe to take payments but this left them responsible for managing, collecting and remitting sales tax wherever they were liable - a tough ask for a lean team focused on product development.
Rather than take on the task of managing global sales tax compliance themselves, Hesse.ai decided to reduce their risks and stop monetizing in some of these new markets.
Things came to a head when their tool went viral.
Gaining international traffic thanks to a video in Spain that had picked up millions of views on Tiktok, the Hesse team were unable to reap the rewards.
Imagine going viral in a different country, but you can't monetize because you're using Stripe. That was the situation we found ourselves in. We had amazing international traffic, but we couldn't monetize because of how difficult compliance became”
Nikolas Adjan, Co-founder, Hesse.ai
Recognizing the opportunity missed, the hunt was on for a new payment solution that could assist rather than hinder international growth.
The Solution
To capitalize on their growing popularity and monetize globally, the Hesse team landed on the Merchant of Record (MoR) model.
An MoR is a legal entity responsible for selling goods or services to an end customer.
They manage all payments and take on the associated liabilities, such as collecting sales tax, ensuring Payment Card Industry (PCI) compliance, and honoring refunds and chargebacks.
Transparent pricing, straightforward developer documentation, and an easy-to-use UI were all non-negotiables.
After some research online, it was clear Paddle ticked every box.
The Implementation
Once it was time to make the move, Hesse was able to swiftly integrate with Paddle in a matter of days, with the help of the Developer Docs and Paddle’s team.
Implementation with Paddle was straightforward; it took us around one week to get set up.”
Johannes Grubmüller, COO, Hesse.ai
The support didn't disappear after implementation either...
Your support team is still doing a phenomenal job. I honestly don't believe we would get a service like it anywhere else.“
Nikolas Adjan, Co-founder, Hesse.ai
The Results
Time back to focus on improving Hesse.ai
Now with Paddle, Hesse is seeing the true benefits of saving time on bureaucracy.
It’s simple, we love building really cool products. We do not love figuring out global sales tax. It feels like you're an extension of our team working on that one issue. That means we can focus on growing Hesse.”
Nikolas Adjan, Co-founder, Hesse.ai
20% MoM revenue growth post implementation
No longer wasting precious time on compliance workarounds, the team has been able to invest more resources into marketing efforts too.
This, along with Paddle's localization and optimized checkout features, has led to exponential growth in MRR.
I would say the most tangible benefit has been the ability to accept international payments and the ability to enter into entirely new markets. Not having to think about compliance means we can concentrate on marketing and product development.”
Johannes Grubmüller, COO, Hesse.ai
Trackable insights with Metrics
Accurate and actionable revenue insights are crucial for driving growth – especially for SaaS companies tracking churn rates, customer locations, and lifetime value at a glance.
Paddle’s subscription analytics tool, ProfitWell Metrics, delivers real-time revenue reporting that’s both intuitive and accessible, giving businesses the clarity they need to scale smarter.
The Hesse team has already seen the impact.
It's been so useful to keep an eye on MRR, churn, and LTV. It reduces manual workload for us, and the UX/UI is smooth and easy to use.”
Johannes Grubmüller, COO, Hesse.ai
The future
Hesse now has their eyes fixed on further international growth.
With Stripe, we were locked in the German market, that’s why 90% of our customers are still located in German-speaking countries. We know we can now monetize on a global scale and we’re really excited to see where that takes us.”
Nikolas Adjan, Co-founder, Hesse.ai
As a member of Paddle’s 2024 AI Launchpad cohort, the Hesse team will continue to have access to industry-leading mentorship, masterclasses and Paddle’s AI cohort community into 2025 and beyond…
We’ve gotten so much out of the AI Launchpad. Getting to harness the Paddle team’s knowledge in one-to-one sessions has been so helpful.”
Nikolas Adjan, Co-founder, Hesse.ai
By choosing Paddle, Hesse.ai landed on a payment partner committed to driving their growth and supporting sustainable global success for the long term.
If you want to be able to sell your product globally, use Paddle. It really is as simple as that.”
Nikolas Adjan, Co-founder, Hesse.ai
Want to know more about how Paddle can help your SaaS or digital product sell globally with ease? Create your free account now or speak to our team. Get Started.