Swedish Unicorn Lovable Hits $100M ARR in Just 8 Months: The AI-Powered Revolution

Less than a week after becoming Europe’s latest unicorn, Swedish vibe coding startup Lovable has now crossed the $100 million annual recurring revenue (ARR) mark. This milestone, achieved in just eight months since launch, underscores the skyrocketing popularity of its AI-powered website and app builder.

With over 2.3 million active users and 180,000 paying subscribers, Lovable's growth is nothing short of phenomenal. The startup operates with a lean team of 45 full-time employees, showcasing an impressive employee-to-revenue ratio.

A Strategic Shift in Pricing

Lovable recently made a bold move by transitioning users from its Team tier to the Pro tier, resulting in a $1.5 million ARR loss in a single day. This shift is part of a broader strategy to introduce a new Business tier, positioned between Pro and Enterprise offerings. The Business tier includes features like Single Sign-On (SSO), private projects, and data opt-out options, aimed at attracting more enterprise clients.

Enterprise Adoption and Future Prospects

While Lovable already counts Klarna, HubSpot, and Photoroom among its clients, the startup is keen on expanding its enterprise footprint. The new Business tier is designed to address enterprise concerns around vibe coding, potentially unlocking new revenue streams beyond prototyping.

The AI Tailwind

Lovable’s rapid ascent is part of a broader trend fueled by AI innovation. Other startups, like Synthesia, have also crossed the $100M ARR mark, but Lovable’s achievement is particularly notable given its eight-month timeline.

With over 10 million projects created on its platform, Lovable is poised to redefine the landscape of AI-powered development tools.