Lovable Raises $200M, Becomes Europe’s Fastest-Growing Unicorn in AI-Powered Coding App Space

In September, Anton Osika, co-founder of Lovable – a platform specializing in AI-assisted coding for individuals without programming experience – captivated a full audience at TechBBQ’s annual conference in Copenhagen.

Lovable is a pioneering force in the AI field known as vibe-coding, where users can guide AI models to produce code, websites, or entire applications. The Swedish company has rapidly gained traction: within eight months, it reported an Annual Recurring Revenue (ARR) of over $100 million and secured a $200 million Series A funding round at a valuation of $1.8 billion, making it Europe’s fastest-growing unicorn. Investors are already speculating about a forthcoming Series B round that could value the company at $4 billion.

Osika envisions Lovable as the premier destination for software product development. He aims to provide users and founders with a comprehensive platform to navigate all stages of product development, enabling them to effortlessly build AI-native companies.

“If you’re running a business, there are numerous things that need attention, such as setting up payments, understanding your user base, and incorporating your company,” Osika explained. “I want Lovable to assist with all these aspects.”

In late June, Lovable launched an agent capable of reading files, debugging errors, web searching, image generation, and file location – a preliminary step towards realizing this vision. The platform now boasts over 2.3 million active users, with 180,000 paying subscribers. Osika revealed that Lovable’s pricing strategy was determined by considering what would sustain the company financially.

Lovable’s favorite use cases encompass a marketer constructing a sales training platform and an engineer managing multiple businesses on the platform. According to Osika, users can now create fully functional products using Lovable, with the experience closely mirroring collaboration with human developers.

AI-generated code has faced criticism for its brittleness, better suited for demonstrations than finished products. However, Osika remains unfazed, emphasizing that all code should undergo review before publication, irrespective of whether it’s AI or human-generated.

Lovable currently operates on multiple foundational models, including Anthropic’s Claude and OpenAI’s GPT-5. While these companies also offer product development services (Claude Code and Codex), there’s a potential for competition. Osika remains confident, asserting that Lovable’s focus on delivering the best product allows it to leverage various AI model providers, while providers are limited to their own models.

“By tapping into numerous foundation models, our users gain unmatched capabilities, while we maintain the flexibility to grow rapidly without unnecessary infrastructure,” Osika stated. “The scope of what you can achieve is constantly expanding.”

Osika’s team concentrates on three key aspects: maintaining speed and security while ensuring a seamless user experience. He believes this approach will foster trust with customers, enabling Lovable to outshine its competitors.

Just a month after Figma, another AI-focused app design competitor, went public with a $19.3 billion market cap, Osika remains focused on delivering the best product for users. “As long as we are catering to our users’ needs, that’s all that matters,” he said.

Lovable is deeply rooted in the Swedish tech scene. Founded in Stockholm, its list of investors includes notable European firms and angel investors such as Stefan Lindeberg (Nordic Game Ventures), Fredrik Hjelm (founder of Guestit), Greens Ventures (Nordic), Hummingbird Ventures (London); 20VC (London, founded by Harry Stebbings who launched Project Europe to invest more in the ecosystem).

Revolut CEO Nik Storonsky and Swedish founder Sebastian Siemiatkowski, whose company Klarna is also a client of Lovable, are angel investors. Other esteemed clients include HubSpot and Photoroom. The success of Lovable within Europe has sparked excitement among investors and founders alike about the potential for European AI unicorns to raise the bar for ambition on the continent.

Osika plans to keep Lovable anchored in Europe, although it does maintain a team in Los Angeles. While many European tech companies eventually migrate to the US for increased capital and opportunities, Osika views Lovable as an exception for now.

Recently, Osika has started investing in founders himself. Dennis Green-Lieber’s Danish consumer intelligence company, Propane.ai, received an investment from Osika as part of its $1.2 million seed round. Green-Lieber believes that Lovable exemplifies a belief shared by many in the Nordic scene: they too possess world-class talent and can compete globally.

“Yes, we’ve had giants like Zendesk, Unity, Klarna, and Spotify over the past decade, but what Lovable demonstrates is that with small teams, a global mindset, and relentless effort, you can still build a category-defining company,” Green-Lieber concluded. “As a founder, I can say it’s lit a fire in our ecosystem to see this happen right here at home.”