Summary:
Rocket.new raised $15 million in a seed round led by Salesforce Ventures, with Accel and Together Fund participating.
The startup gained 400,000 users and $4.5 million ARR in just three months post-beta launch, targeting $60-70 million ARR by next June.
It is an AI-powered platform that builds production-ready apps from prompts, differentiating from vibe-coding rivals by solving "day two" challenges.
The platform has built half a million applications, with users from companies like Meta and PayPal, and focuses on serious apps like e-commerce and fintech.
Rocket.new uses a subscription model starting at $25/month, achieves 50-55% gross margins, and is expanding its team and U.S. presence.
Rocket.new: Revolutionizing App Development with AI
Rocket.new, an Indian startup based in Surat, has developed an AI-powered platform that enables users to build full, production-ready applications from natural-language prompts. Unlike competitors that focus on quick prototypes, Rocket.new aims to solve the "day two" problem by providing a comprehensive solution for app iteration, maintenance, and deployment.
Impressive Growth and Funding
In a recent seed round led by Salesforce Ventures, with participation from Accel and Together Fund, Rocket.new secured $15 million in equity funding. This investment comes just three months after the platform's beta launch in June, highlighting its rapid traction.
Since debut, the startup has attracted 400,000 users across 180 countries, including over 10,000 paid subscribers, and achieved $4.5 million in annual recurring revenue (ARR). Co-founder and CEO Vishal Virani projects ARR to reach $20–25 million by year-end and $60–70 million by June next year.
The Vision: Beyond Code Generation
Rocket.new is positioning itself as the first "vibe solution platform", with plans to evolve into a full agentic system. This system will not only generate source code but also handle competitive research, product development, and scaling—potentially eliminating the need for product managers. The current version, 0.3, has already built half a million applications.
Image Credits: Rocket.new
User Base and Applications
The platform caters to product managers, solopreneurs, and front-end developers, with users from major companies like Meta, PayPal, KPMG, PwC, and Times Internet using it for personal projects. About 80% of users build "serious" applications, including:
- 12% e-commerce platforms (e.g., grocery, apparel)
- 10% fintech apps
- 5–6% B2B tools
- 4–5% mental health apps
Distribution is split between mobile apps (45%) and websites (55%), with many users integrating existing backends from tools like Supabase.
Technology and Differentiation
Rocket.new combines large language models from Anthropic, OpenAI, and Google Gemini with its own deep learning systems, trained on proprietary data from the founders' previous venture, DhiWise. This architecture sets it apart from rivals like Lovable, Bolt, and Cursor.
While generating an app takes about 25 minutes—slower than the 3-minute norm—it delivers a more complete user experience with all essential modules.
Business Model and Market Focus
The platform offers a free trial up to one million tokens, after which subscriptions start at $25 per month for five million tokens. This model targets serious users, yielding a gross margin of 50–55%, with goals to increase to 60–70%.
Key markets include the U.S. (26% of revenue), Europe (15–20%), and India (10%). To bolster U.S. presence, Rocket.new is establishing a headquarters in Palo Alto.
Future Plans
With organic growth driven by word-of-mouth, the startup will use the seed funding to enhance go-to-market strategies, deepen market penetration, and accelerate R&D. The team, currently 58 members mostly in Surat, plans to double engineering and product staff in India over the next year.
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