Lovable doubles valuation as enterprise AI demand surges
Swedish artificial intelligence start-up Lovable has raised $400 million at a $13.3 billion valuation, doubling its worth in less than a year as demand grows for tools that let employees build software using natural-language instructions. The Series C financing was led by Menlo Ventures and the Scaleup Europe Fund, with participation from investors including Balderton Capital, Carmignac, Tencent,…
Swedish AI startup Lovable has dramatically increased its valuation, surging to $13.3 billion after raising $400 million in a Series C funding round. This massive valuation growth indicates the surging demand for tools that allow employees to build software using natural language instructions. Led by Menlo Ventures and the Scaleup Europe Fund, the new investment brings Lovable's total valuation from $6.6 billion in December 2025 to the impressive $13.3 billion mark.
The Stockholm-based company now joins Europe's league of most valuable private technology businesses.
Lovable is expanding its reach beyond its initial developer and entrepreneur user base to target large companies that desire cross-departmental application creation and deployment without relying solely on traditional software engineering teams. Companies such as Nvidia, Adidas, Deutsche Telekom, Hearst, and Zendesk have embraced Lovable's technology, which is described as a full-stack AI development platform.
Users can instruct the system to create interfaces, business logic, and other software components from simple language prompts, significantly reducing the time between an idea and a deployed application, a process known as "vibe coding."
Since its product launch in November 2024, over 60 million projects have been created through Lovable, with annual recurring revenue reaching approximately $500 million by June. The company aims to reach a $600 million revenue run rate by the end of August, underscoring the rapid adoption of AI software-development tools.
As large organizations seek AI development tools that can be used by various staff members, Lovable is well-positioned to address this growing market demand. The shift towards more accessible AI tools in enterprise settings also brings heightened concerns around security, reliability, and governance, as these AI-generated applications often interact with sensitive data and internal systems.
Lovable plans to allocate part of the new capital to enhance security measures, expand its workforce by about 50% to roughly 450 employees, and increase its presence in the United States and Latin America. However, intense competition from other AI-assisted development platforms and traditional software companies is putting pressure on the economics of AI coding as providers strive to maintain healthy margins while offering sophisticated development capabilities.
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