Swedish company Lovable has more than tripled its valuation in five months. The AI startup has now raised $330 million at a valuation of $6.6 billion. The company offers a vibe coding tool that allows users to build entire applications using text prompts.
Lovable announced Thursday that it has raised $330 million in a Series B funding round led by CapitalG and Menlo Ventures. Khosla Ventures, Salesforce Ventures, and Databricks Ventures also participated, as did other investors. The Stockholm-based startup was valued at $1.8 billion in July after a $200 million Series A round.
Lovable’s growth has been remarkably rapid, as TechCrunch illustrates. Within eight months, the company reached the milestone of $100 million in annual recurring revenue (ARR). Four months later, this doubled to more than $200 million ARR. That’s a pace that stands out even in the AI sector.
Big names as customers
According to Lovable, more than 100,000 new projects are built on the platform every day. In the first year, users created a total of more than 25 million projects. The new funding will go toward building deeper integrations with third-party applications and expanding enterprise functionalities. Lovable also wants to strengthen the infrastructure needed for complete applications, such as databases, payment systems, and hosting.
Conscious choice for Europe
However, not all financial matters are going as planned for Lovable. In November, Lovable was in the news because the company did not pay VAT. Osika confirmed this in a LinkedIn post and said that the company would resolve the situation. He concluded his comments by stating that these types of taxes are the reason why the EU is not a good home base for fast-growing startups.
Furthermore, Lovable cannot rely on certainty in its own field. Competition in the vibe coding market is fierce and fluctuates enormously. Cursor is considered a major competitor and competes with Lovable for users. The latter distinguishes itself by focusing on complete, deployable applications without users having to write code.