Swedish AI coding startup Lovable has raised $400 million in a new funding round, lifting its valuation to $13.3 billion and cementing its position as one of Europe’s most valuable artificial intelligence companies.
The funding round was co-led by Menlo Ventures and the Scaleup Europe Fund, with participation from existing investors including Balderton Capital, World Innovation Lab, and Tencent. The new valuation is more than double the $6.6 billion Lovable achieved in its previous financing round in December 2025.
Lovable is approaching an annual recurring revenue (ARR) of $600 million, nearly tripling its run rate in less than a year. The Stockholm-based company develops AI software that enables users to build applications and business tools using natural-language prompts, making software creation accessible to non-programmers as well as professional developers. Customers include NVIDIA, Adidas, Hearst, and Zendesk.
The company plans to use the fresh capital to accelerate international expansion, increase headcount by roughly 50%, and invest in product reliability, enterprise security, and new capabilities. CEO Anton Osika said Lovable’s long-term ambition is to evolve from helping users build software to becoming a platform that helps businesses operate entirely through AI-generated applications.
The fundraising reflects continued investor enthusiasm for the rapidly growing “vibe coding” sector, where AI generates software directly from natural-language instructions. Venture capital firms have poured billions of dollars into AI coding startups over the past year, betting that generative AI will fundamentally transform software development and enterprise productivity.
With a valuation exceeding $13 billion, Lovable now ranks among Europe’s largest private AI companies and one of the continent’s fastest-growing software startups. The latest round also highlights increasing competition between European and U.S. AI companies as investors race to back the next generation of enterprise software platforms.
