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, World Innovation Lab and Regent. The transaction lifts Lovable’s valuation from $6.6 billion in December 2025 and places the Stockholm-based company among Europe’s most valuable private technology businesses.

Lovable is expanding beyond its early base of developers and entrepreneurs by targeting large companies that want employees across departments to create and deploy applications without relying entirely on traditional software engineering teams. Its customers include Nvidia, Adidas, Deutsche Telekom, Hearst and Zendesk, while organisations such as Klarna and HubSpot have also used its technology.

The company describes its product as a full-stack AI development platform that can generate working web applications from plain-language prompts. Users can instruct the system to create interfaces, business logic and other software components, shortening the process between an idea and a deployed application.

That approach has become widely known as “vibe coding”, a term associated with the growing use of generative AI to translate human instructions into software. The category has expanded rapidly as advances in large language models improve their ability to write, interpret and modify code.

More than 60 million projects have been created through Lovable since its product was launched in November 2024. Annual recurring revenue reached about $500 million by June and the company is on course to approach a $600 million revenue run rate by the end of August, highlighting the pace at which AI software-development tools are being adopted.

The figures also underline how quickly Lovable has moved through successive financing rounds. The company raised $330 million at a $6.6 billion valuation in December, after earlier reaching a $1.8 billion valuation in 2025. Investor interest has remained strong despite wider debate over whether valuations across the generative AI sector are running ahead of sustainable profits.

Lovable’s enterprise push is central to its next phase. Large organisations increasingly want AI development tools to be usable by product managers, designers, marketers and operations staff, rather than being limited to professional programmers. That is potentially widening the addressable market for application-development platforms while changing how companies organise technology work.

The shift also brings higher expectations around security, reliability and governance. Software created inside large companies can interact with sensitive information, customer records and internal systems, making access controls and oversight important considerations as AI-generated applications move from prototypes into production.

Lovable plans to invest part of the new capital in those areas while expanding its workforce by about 50 per cent to roughly 450 employees. It is also increasing its presence in the United States and Latin America as it competes for corporate customers outside Europe.

Competition is intensifying. Replit, Vercel, Bolt and other AI-assisted development platforms are targeting overlapping groups of developers, entrepreneurs and enterprise teams, while established software companies are embedding generative AI into coding and application-building products. Major AI model providers are also improving their own programming capabilities.

The rapid expansion of such platforms is putting pressure on parts of the traditional software industry. Companies that previously bought specialised software for individual functions can increasingly experiment with building internal tools themselves, potentially reducing demand for some conventional software-as-a-service products.

The economics of AI coding remain under scrutiny, however. Providers must pay for substantial computing capacity and often depend on external foundation models supplied by companies such as OpenAI, Anthropic and Google. Maintaining healthy margins while offering increasingly sophisticated development capabilities is likely to remain a key challenge as usage expands.