Lovable nears $300m round at $13.2bn as vibe-coding heats up
Sweden's Lovable is reportedly raising $300m at a $13.2bn valuation, doubling its worth in months. For India's vast software workforce, the signal is impossible to ignore.
The News
Lovable, the Swedish startup behind one of the fastest-growing "vibe-coding" tools, is in talks to raise $300 million at a $13.2 billion valuation, according to a report from Sifted picked up by TechCrunch. Menlo Ventures is expected to lead the round.
The figure would double the company's $6.6 billion valuation, which it reached only in December 2025. That is a remarkable re-rating for a business that is less than three years old and lets people build working software simply by describing what they want in plain language.
The momentum is grounded in unusually strong numbers. Lovable, led by co-founder and chief executive Anton Osika, is running at roughly $500 million in annualised revenue as of June 2026 and says users spin up around 1 million new projects every week. Its customers span solo founders and salespeople building storefronts through to large enterprises including Workday, Asana and Nvidia.
Menlo Ventures, for its part, closed a fresh $3 billion fund in June 2026, giving it ample firepower to anchor a deal of this size.
Why It Matters
The raise is the clearest sign yet that investors believe natural-language software creation is a durable category rather than a passing novelty. The comparisons stack up quickly: Replit was valued at $9 billion in March 2026, Factory raised $150 million at a $1.5 billion valuation in April, and Cursor was absorbed by SpaceX in a $60 billion all-stock deal in June. Capital is chasing anything that shortens the distance between an idea and a shipped product.
The last time a software category compressed valuations this fast was the low-code and no-code wave of 2020-21, when platforms promising "apps without developers" attracted billions before many struggled to convert hype into retention. What separates this cohort is revenue velocity. A half-billion-dollar run rate inside three years is the sort of trajectory that once took enterprise software a decade to build.
The open question is defensibility. When the underlying models are largely shared, the moat has to come from workflow, trust and enterprise distribution rather than the code generation itself.
Indian Angle
For India, this story lands squarely on the country's $250-billion-plus IT services engine. Vibe-coding tools attack exactly the layer that firms such as TCS, Infosys and Wipro have monetised for decades: turning business requirements into working applications. If a salesperson at an Indian enterprise can build an internal tool over a weekend, the economics of large offshore delivery teams start to look different. That is both a threat to the old bench-heavy model and an opportunity for services firms willing to reposition around orchestration and governance.
There is a home-grown competitive dimension too. Indian product teams, from the makers of InVideo's Rocket.new to a growing crop of app-generation startups, are chasing the same market, while SaaS leaders such as Zoho and Freshworks have the distribution to embed similar features. The India Stack ethos of building fast and cheap fits vibe-coding neatly.
Cost is the sharpest edge for Indian developers. Lovable's subscriptions are dollar-denominated, so a weak rupee makes these tools meaningfully pricier here than in the West even as they promise to cut build costs. Expect Indian founders to weigh whether to pay up for a global platform or back a local alternative priced in rupees.
FAQ
How much is Lovable raising and at what valuation?
The company is reportedly in talks to raise $300 million at a $13.2 billion valuation, with Menlo Ventures expected to lead. That would double the $6.6 billion valuation Lovable reached in December 2025.
What exactly does Lovable do?
Lovable is a "vibe-coding" platform that lets users build software by describing it in plain language. Customers range from individual founders and designers to enterprises such as Workday, Asana and Nvidia.
What does this mean for India's IT services sector?
Tools that generate working software from natural language target the same requirement-to-application work Indian services firms have long sold. Over time this pressures bench-heavy delivery models while opening room for governance and orchestration roles.
Where can I read the original report?
The funding talks were first reported by Sifted and covered by TechCrunch, linked in the attribution below.
This story was reported by TechCrunch. Read the full original coverage at TechCrunch.