Swedish AI-powered coding platform Lovable has achieved remarkable milestones just eight months after launch, becoming Europe's latest unicorn and crossing the $100 million annual recurring revenue (ARR) threshold. The Stockholm-based startup recently raised a $200 million Series A round led by Accel at a $1.8 billion valuation, making the round one of the largest in Europe, and Lovable one of the fastest-growing companies globally.

Lovable enables users to create websites and applications through natural language commands, leveraging large language models to democratize software development. The platform has attracted over 2.3 million active users and 180,000 paying subscribers. In June, CEO Anton Osika announced Lovable had reached $75 million in annual recurring revenue. Remarkably, this impressive number was generated with a team of just 45 full-time employees.

According to the company, users have created more than 10 million projects to date, and currently add 100,000 new projects daily. Most of these projects come from non-technical founders and operators who use Lovable for prototyping and testing before collaborating with developers on production-grade applications. Even if tests and prototypes account for the bulk of the platform's use cases, Lovable continues to grow towards becoming a tool that could be used to build production-grade applications directly.

Lovable recently launched its Agent mode as the default experience, significantly enhancing the platform's capabilities. The upgraded system acts more like a real developer, interpreting requests, exploring codebases, and handling complex multi-step tasks with 91% fewer errors. The agent can now integrate with external tools, browse websites, generate images, and update code across multiple files simultaneously.

The company has also demonstrated it is willing to prioritize its users over sales, like when Osika posted on X that the company had “lost $1.5 million ARR in a single day” as a result of migrating users from the Team subscription plan to the more affordable Pro subscription once the latter allowed for collaboration. The Team plan has since been replaced by a new Business plan, which boasts business-oriented features, including SSO, private projects, and opt-out mechanisms. The Business plan now stands between the Pro and custom Enterprise offerings.

The emphasis on building up Lovable's focus on its business and enterprise-focused offerings may be related to the fact that, along with paid subscriptions, enterprise adoption is also growing. Lovable has reportedly scored major enterprise customers, including Klarna, HubSpot, and Photoroom. Moreover, CEO Anton Osika highlighted a Lovable-built app by a Brazilian edtech company that generated $3 million in revenue within 48 hours.