Eight months in, Swedish startup Lovable hits $100M in annual revenue

Less than a week after becoming Europe’s newest unicorn, Swedish vibe coding startup Lovable has now also reached centaur status, with over $100 million in annual recurring revenue (ARR).

Lovable achieved this milestone in just eight months since its launch, thanks to the increasing popularity of its AI-powered website and app builder. The startup boasts more than 2.3 million active users and 180,000 paying subscribers. Despite having only 45 full-time employees and 14 open positions, Lovable has an impressive employee-to-revenue ratio.

While subscriptions are driving the majority of Lovable’s revenue, the company is not solely focused on sales. After reaching an ARR of $75 million in June, CEO Anton Osika revealed that Lovable transitioned users from the Team tier to the more affordable Pro tier, resulting in a loss of $1.5 million ARR in a single day. The Teams plan has now been replaced by a Business tier, offering business-oriented features like Single Sign-On (SSO) and private projects.

Large companies such as Klarna, HubSpot, and Photoroom are already using Lovable’s services. However, there are still obstacles in enterprise adoption of vibe coding. The introduction of the Business tier aims to attract more businesses for purposes beyond prototyping.

According to Osika, businesses are generating significant revenue from projects built with Lovable. The startup reports more than 10 million projects created on its platform to date.

The $100 million ARR club is relatively small in Europe but is expanding due to the rise of AI technology. In April, Nvidia-backed Synthesia, a B2B AI video platform, also surpassed this milestone, despite being founded in 2017, not in late 2024.