Lovable Raises $400M, Valued at $13.3B in AI Coding Boom

Stockholm-based AI coding innovator, Lovable, has successfully closed a $400 million Series C funding round, propelling its valuation to an impressive $13.3 billion. This significant capital infusion marks a doubling of the company's valuation in just eight months, underscoring the intense investor interest in AI-driven software development tools. The round was co-led by prominent venture capital firms Menlo Ventures and Scaleup Europe Fund, a vehicle managed by European investment giant EQT.

The funding round saw participation from a robust syndicate of investors, including strategic investment from Chinese tech titan Tencent, alongside Balderton Capital. Existing backers also demonstrated continued confidence, with Accel and Google-backed CapitalG making additional commitments. This influx of capital positions Lovable to further accelerate its growth and expand its reach in the rapidly evolving AI coding sector.

Launched in late 2023 with official service commencement in November 2024, Lovable specializes in natural language-driven software generation. The platform empowers users, even those without traditional programming expertise, to articulate their needs in plain language to construct websites, applications, and internal enterprise systems. The platform's rapid adoption is evidenced by over 60 million projects created to date, with notable clients including industry leaders such as NVIDIA, Adidas, and Deutsche Telekom.

Lovable's financial trajectory is equally compelling. The company's annualized revenue run rate reached $500 million as of June, with projections to expand to approximately $600 million by the end of August. This represents a substantial leap from its run rate of around $200 million in December 2025, highlighting exceptional commercial traction.

The AI coding market is experiencing a surge in investment, with Lovable's success mirroring that of competitors. For instance, US-based Cognition, developer of the AI coding agent Devin, recently secured $1 billion at a $26 billion valuation. Reports also indicate Cognition is in discussions for a new funding round at a valuation exceeding $40 billion. This competitive dynamic intensifies the focus on platforms that can significantly enhance developer productivity and democratize software creation.

For Tencent, this investment further diversifies its AI portfolio, which includes significant stakes in leading Chinese AI companies like Moonshot AI, Zhipu AI, and MiniMax, as well as participation in DeepSeek's recent funding. Lovable's inclusion signals Tencent's strategic expansion beyond foundational AI models in China to encompass promising AI application sectors globally, particularly in the high-growth AI coding space.