Swedish artificial intelligence startup Lovable has announced a massive $330 million Series B funding round, catapulting its valuation to an impressive $6.6 billion. This significant investment comes just five months after its previous funding round, marking a more than threefold increase in the company's valuation and underscoring the intense investor interest in its innovative "vibe-coding" technology.

The Stockholm-based company confirmed the Series B raise, which was co-led by prominent venture capital firms CapitalG and Menlo Ventures. Additional participation came from notable investors including Khosla Ventures, Salesforce Ventures, and Databricks Ventures, among others. This latest capital injection follows a rapid ascent for Lovable, which secured a $200 million Series A round in July, valuing the company at $1.8 billion.

Rapid Growth Fueled by AI Innovation

Lovable has quickly emerged as a leader in the burgeoning AI sector, particularly with its unique "vibe-coding" tool. This platform empowers users to generate code and construct complete applications using simple text prompts, democratizing app development. Launched in 2024, the company has demonstrated blistering growth, achieving the coveted $100 million Annual Recurring Revenue (ARR) milestone within just eight months. Four months later, it doubled that figure, surpassing $200 million in ARR.

The company boasts a strong customer base, counting major software players like Klarna, Uber, and Zendesk among its clients. Lovable reports that its platform facilitates the creation of over 100,000 new projects daily, with more than 25 million projects launched in its inaugural year alone.

Strategic Use of New Capital

Lovable plans to deploy the fresh capital to deepen integrations with third-party applications and expand its feature set for enterprise-level use cases. A significant portion of the funding will also be dedicated to enhancing its platform's core infrastructure, incorporating essential components such as databases, payment systems, and hosting capabilities to support the development of full-fledged applications and services.

CEO Defends European Base Amidst Silicon Valley Pressure

Anton Osika, Lovable's co-founder and CEO, recently spoke at the Slush conference in Helsinki, Finland, where he attributed the company's remarkable scalability to his decision to resist investor pressure to relocate to Silicon Valley. "It was tempting, but I really resisted that," Osika stated on stage. "I [can] sit here now and say, 'Look, guys, you can build a global AI company from this country.' There is more available talent if you have a strong mission, and you have a lot of urgency coming together as a group and working."

In November, Lovable faced scrutiny for not paying VAT (Value Added Tax), a standard tax on goods and services within the European Union. Osika addressed the issue in a LinkedIn post, confirming the oversight and pledging to rectify the situation. He also used the opportunity to counter arguments that such taxes make the EU an unsuitable environment for high-growth startups.

"Vibe-Coding" Sector Heats Up

The "vibe-coding" space continues to attract significant venture capital interest. Another prominent player in this domain, Cursor, recently secured $2.5 billion in November at a staggering $29.3 billion valuation. Similar to Lovable, this marked Cursor's second funding round of the year, seeing its valuation double between June and November, highlighting the intense competition and rapid growth within this niche of AI-powered development tools.

TechCrunch has reached out to Lovable for further comments.