Lovable claims $400m ARR as vibe coding boom spreads

Lovable says it added another $100 million of annual recurring revenue in a month, claiming it rose from $300 million to $400 million as “vibe coding” tools spread beyond engineers. The Stockholm-based startup told Business Insider it now sees more than 15 million daily active users and about 200,000 new projects created each day, after a December funding round that valued the company at $6.6 billion.

The numbers land in a market that has started to treat AI coding as a subscription business rather than a developer productivity feature. According to Business Insider, Lovable says it reached $100 million in ARR eight months after launching at the end of 2024, doubled to $200 million by the end of 2025, and now expects it could top $1 billion by year’s end. Cursor, a more developer-focused competitor, previously said it had reached $1 billion in annualized revenue, putting a price tag on what used to be bundled into salaries.

What makes the “vibe coding” segment different is not the model but the customer’s relationship to the output. Lovable’s pitch is that non-engineers can create software by describing what they want; the company says most users are still non-technical founders and entrepreneurs. That shifts the cost center from writing code to owning it: debugging, security patches, compliance work, and the support burden that appears when a customer cannot explain what their app actually does.

Lovable says its fastest growth is now coming from an enterprise product launched in August. Enterprises tend to buy reliability, audit trails and accountability, not demos. If non-technical teams can spin up internal tools without a traditional engineering pipeline, the platform becomes the choke point when something breaks—because the “creator” cannot fix it, and the company running the tool still has to keep payroll, customers, or data flows moving.

The company’s dependence on Anthropic’s Claude model underlines another constraint: the economics are partly upstream. Lovable’s chief revenue officer, Ryan Meadows, told Business Insider that Claude Code’s viral growth did not cannibalise Lovable, and described the relationship as complementary—developers use Claude, non-technical staff use Lovable. But Lovable is also “powered by Claude”, meaning its margins and product roadmap are tied to another firm’s pricing and capabilities.

Lovable says it reached $400 million ARR with 146 employees and plans to end the year at about 350, while opening its first US office in Boston for go-to-market roles. A hiring sprint can fill sales seats quickly; it is slower at building the boring parts—incident response, customer success, and liability management—that arrive once the apps created are no longer prototypes.

A product that creates 200,000 projects a day can look like a software factory. The hard test is what happens when one of those projects becomes a business process and then fails on a Tuesday afternoon.