Lovable, the innovative AI coding platform based in Stockholm, is approaching a remarkable milestone of 8 million users, a significant leap from 2.3 million reported just four months ago, revealed CEO Anton Osika during an interview at the Web Summit in Lisbon. The company, founded nearly a year ago, boasts an impressive rate of 100,000 new products created daily on its platform.
This rapid growth is underscored by Lovable’s successful capital-raising efforts, totaling $228 million, with a recent $200 million funding round catapulting its valuation to $1.8 billion. Speculation has emerged regarding incoming investments at a $5 billion valuation, though Osika reassured stakeholders that the company is not constrained by capital and opted not to elaborate on future fundraising strategies.
A notable statistic missing from the discussion was Lovable’s current annual recurring revenue (ARR), which reached $100 million in June. However, concerns have surfaced regarding the sustainability of the current coding trend. Barclays’ recent research indicated a decline in traffic to popular platforms like Lovable, with a reported 40% drop in September. Analysts have questioned whether interest in “vibe coding” has peaked or if it simply experienced a temporary downturn.
Despite these concerns, Osika emphasized strong user engagement, citing over 100% net dollar retention, indicating that existing users are spending more as time progresses. The company has also expanded its workforce past the 100-employee count, actively recruiting leadership talent from San Francisco to enhance its operations in Stockholm.
Lovable emerged from GPT Engineer, an open-source tool created by Osika that gained popularity among developers. Recognizing the broader potential, he aimed to cater to the 99% of individuals lacking coding skills. “I woke up one day and realized we could transform software development,” Osika recalled, illustrating his passion for innovation.
The platform boasts a diverse user base, with over half of the Fortune 500 companies utilizing Lovable to enhance productivity. Stories of young creators, such as an 11-year-old in Lisbon who built a Facebook clone for a school project, highlight the platform’s versatility. Meanwhile, a Swedish duo averages $700,000 in annual revenue from a startup developed on Lovable in just seven months.
As for security—a pivotal concern in vibe coding—Osika acknowledged recent incidents, such as a significant app data leak, and stressed that hiring security engineers is a priority. Lovable now implements multiple security checks before users can deploy their applications, particularly those involving sensitive data like banking.
Addressing competition from industry giants like OpenAI and Anthropic, which also provide coding tools, Osika maintains that the market can accommodate multiple players. He aims to facilitate creativity and empower users to turn ideas into reality.
Lovable’s mission revolves around creating an all-encompassing platform where product teams can efficiently navigate everything from user insights to feature deployment. Emphasizing practical application over lengthy documentation, Osika noted that employees can prototype quickly and adapt based on user feedback.
Even amid rapid growth and increasing media attention, Osika remains focused on cultivating a mission-driven work environment that contrasts with the high-pressure culture often seen in Silicon Valley. “What matters is that our team is dedicated and truly invested in what we’re building,” he stated, reflecting a commitment to a balanced work culture within a dynamic startup environment.
