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Heroku

Can a Salesforce-owned PaaS retain developer loyalty and grow enterprise revenue in an era dominated by hyperscaler-native deployment tooling?

Founded2007
HQSan Francisco, CA, USA
IndustryInfrastructure / BaaS
The story

Founded in 2007 as a Ruby-focused PaaS, Heroku rapidly expanded to support multiple languages and became the de facto deployment platform for startups. Acquired by Salesforce in 2010, it became a Salesforce business unit, benefiting from enterprise distribution but gradually losing developer mindshare to AWS, GCP, and Azure. In 2022, Heroku eliminated its free tier — a pivotal moment that sparked developer backlash — and pivoted toward monetized tiers and enterprise compliance (PCI DSS, HIPAA, SOC). Its embedded finance footprint is narrow: Stripe processes its own platform subscription billing, and Braintree is evidenced via PayPal's customer listing.

Last 12 months
2025-10
2025-09
Product timeline
2007
Heroku founded as a cloud Platform-as-a-Service (PaaS) for Ruby applications.· pivot
2010
Acquired by Salesforce.com for approximately $212 million.· acquisition
2022
Eliminated free dynos and free data products; launched Eco and Mini plans as low-cost alternatives.· pivot
2023
Heroku CI and Heroku Teams made free for card-paying customers; Private Spaces expanded to India, Canada, Singapore, and UK.· banking
The stack
Payments / PSP
StripeBraintree
Accounting gap: none