Lovable, one of Europe’s fastest-growing AI startups and a rising star in the vibe-coding space, is preparing to raise over $150 million in a new funding round at a valuation close to $2 billion, according to the Financial Times.
Rapid Growth and Funding Trajectory
This significant funding push follows a $15 million round in February led by Creandum. Although that round was described as “pre-Series A,” the size and valuation leap indicate Lovable is now firmly in growth-stage territory. The new round is reportedly led by Accel, with Creandum and other investors like 20VC participating.
Founded in 2023, Lovable launched its web app-building product in late November last year. By May, CEO Anton Osika shared on social media that the company had reached $50 million in annual recurring revenue (ARR) within just six months.
Lovable specializes in building complete web applications from simple text prompts, handling the frontend user interface—often using the popular React framework—and connecting it to databases like Supabase. Pricing starts at about $25 per month for 250 “credits.” Users have reported impressive outputs; one Reddit post detailed an app with over 29,000 lines of code and dozens of functions created for $250.
New AI Agent Features and Pricing Model
On Monday, Lovable announced a beta release of an AI agent designed to automate complex coding tasks such as editing project files or debugging. This new feature will operate on a usage-based pricing model: the more tasks the agent completes, the more credits it consumes.
While this may lead to increased costs for users who hand over app management to the agent, such usage-based pricing is becoming standard in the AI agent space. Startups typically face variable fees from AI model providers like OpenAI or Anthropic, so charging based on usage helps align costs and revenue, a strategy likely to appeal to investors.
What The Author Thinks
Lovable’s growth and innovative use of AI agents point toward a future where coding becomes increasingly automated and accessible. While usage-based pricing may raise costs for some users, it reflects the real expenses of AI compute and incentivizes efficient coding. This balance is crucial for sustainable growth in AI-powered developer tools and should encourage further investment and innovation.
Featured image credit: PickPik
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