Lovable’s Meteoric Rise: Nearing 8 Million Users in Just One Year
In a remarkable display of growth, Stockholm-based AI coding platform Lovable is on the verge of reaching 8 million users, a significant leap from the 2.3 million active users reported in July. CEO Anton Osika shared this milestone during a recent discussion, highlighting that the company, founded merely a year ago, now witnesses the creation of 100,000 new products daily on its platform.
This rapid expansion underscores Lovable’s escalating influence in the tech industry. To date, the startup has secured $228 million in funding, including a substantial $200 million round this summer, which valued the company at $1.8 billion. Speculation abounds that new investors are considering backing Lovable at a $5 billion valuation. However, Osika emphasized that the company is not in immediate need of additional capital and refrained from commenting on future fundraising endeavors.
During his appearance at the Web Summit in Lisbon, Osika chose not to disclose the current annual recurring revenue (ARR) figures. Previously, Lovable announced reaching $100 million in ARR by June, a testament to its impressive growth trajectory. Nonetheless, some analysts have raised concerns about the sustainability of the vibe coding trend. Research from Barclays, coupled with Google Trends data, indicated a 40% decline in traffic to platforms like Lovable and Vercel’s v0 as of September. Analysts questioned whether this decline signifies a peak in interest or a temporary lull before renewed engagement.
Despite these observations, Osika remains confident in Lovable’s user retention, citing a net dollar retention rate exceeding 100%, indicating that users are increasing their spending over time. The company has also expanded its team, surpassing 100 employees, and is actively recruiting leadership talent from San Francisco to strengthen its Stockholm headquarters.
Lovable’s origins trace back to GPT Engineer, an open-source tool developed by Osika that gained rapid popularity among developers. Recognizing a broader opportunity, Osika envisioned a platform that would democratize software development for the vast majority without coding expertise. This vision has materialized, with Lovable attracting a diverse user base. Notably, over half of Fortune 500 companies utilize Lovable to enhance creativity. Additionally, an 11-year-old in Lisbon used the platform to create a Facebook clone for his school, and a Swedish duo has generated $700,000 annually from a startup launched seven months ago on Lovable.
Security remains a focal point for Lovable, especially in light of recent incidents where applications built with similar tools exposed sensitive data. Osika acknowledged these challenges and emphasized the company’s commitment to security, noting that the engineering team is prioritizing the hiring of security experts. Lovable has implemented multiple security checks before deployment and advises users developing sensitive applications to engage security professionals, mirroring traditional development practices.
Regarding competition from AI giants like OpenAI and Anthropic, whose models power Lovable but who have also introduced their own coding agents, Osika maintains a collaborative perspective. He believes the market is expansive enough for multiple players and focuses on enhancing the user experience rather than fixating on competitors.
Osika envisions Lovable as the ultimate software development platform, enabling product organizations to manage all aspects of development through an intuitive interface. This approach allows employees to swiftly prototype ideas, test them with early users, and iterate efficiently, embodying the demo, don’t memo philosophy prevalent among product leaders.
Despite the rapid growth and investor interest, Osika remains grounded, emphasizing a mission-driven company culture that values work-life balance. He highlights that many of Lovable’s top team members have families and are deeply committed to the company’s mission without succumbing to the pressures of overwork.
