Swedish AI software startup Lovable has raised $400 million in Series C funding, doubling its valuation to $13.3 billion in less than a year as investor appetite for artificial intelligence-powered software development continues to accelerate.
The funding round was led by Menlo Ventures and co-led by the Scaleup Europe Fund, managed by EQT. New investors including Balderton Capital, Carmignac, Kaszek Ventures, LTS Growth, Tencent, World Innovation Lab and Regent also participated, strengthening the company’s global investor base.
Founded in Stockholm, Lovable has emerged as one of Europe’s fastest-growing AI startups by enabling users to build websites and software applications using natural language prompts rather than traditional coding. The company’s “vibe coding” platform has gained traction among businesses seeking to accelerate software development and empower non-technical employees to create digital tools.
The latest investment more than doubles Lovable’s previous $6.6 billion valuation achieved during its Series B round in December 2025, highlighting continued investor confidence in AI application development platforms.
Lovable said it will use the new capital to expand its product capabilities, grow its engineering team and accelerate international expansion. The company also plans to deepen its enterprise offerings as demand for AI-assisted software development continues to grow.
The company has reported exceptional business momentum, with annualized revenue surpassing $500 million and projected to approach $600 million by the end of August, underscoring the rapid commercial adoption of AI-powered coding platforms.
Industry analysts view the funding as another sign that venture capital remains heavily concentrated in artificial intelligence, particularly companies developing tools that automate software creation and enterprise workflows. The investment also reinforces Europe’s growing position in the global AI ecosystem, with Lovable joining the ranks of the continent’s most valuable private technology companies.
The announcement comes amid intensifying competition in the AI coding sector, where startups are racing to simplify software development through conversational interfaces and generative AI. As enterprises increasingly adopt these tools, investors continue to back companies that demonstrate rapid revenue growth and strong customer adoption.
