Swedish AI Startup Lovable Hits $100M ARR Milestone in Just 8 Months
Lovable Reaches $100M ARR Just Eight Months After Launch
Swedish startup Lovable, known for its AI-powered website and app builder, has reached a remarkable milestone: $100 million in annual recurring revenue (ARR) just eight months after its launch. The achievement arrives shortly after Lovable became Europe’s newest unicorn, signifying its rapid ascent in the AI tech landscape.
Rapid Growth Driven by AI Innovation
Lovable’s platform, often described as a ‘vibe coding’ tool, has quickly gained traction with more than 2.3 million active users and 180,000 paying subscribers. This impressive growth is powered by the company’s ability to help users build websites and apps with minimal coding, leveraging advanced AI to streamline the process.
Despite having a lean team of only 45 full-time employees and 14 open positions, Lovable’s employee-to-revenue ratio is among the best in the industry. The bulk of its revenue comes from subscription plans, indicating strong product-market fit and user demand.
Strategic Shifts in Subscription Tiers
Lovable’s CEO, Anton Osika, has demonstrated a willingness to prioritize user value over short-term revenue gains. In June, the company made a bold move by migrating all users from its Team tier to the more affordable Pro tier, sacrificing $1.5 million in ARR within a single day. This decision was made to enable better collaboration features for users and to simplify the product offering.
To address business needs, Lovable has introduced a new Business tier, positioned between Pro and Enterprise. This new plan comes with features such as:
- Self-serve onboarding
- Single Sign-On (SSO)
- Business-specific templates
- Private project capabilities
- Data privacy options (opt-out from AI training)
The Business tier aims to attract more enterprise users, offering the tools necessary for companies to utilize Lovable’s platform beyond prototyping, including in production environments.
Strong Adoption Across Enterprises and Startups
Lovable already counts major brands like Klarna, Hubspot, and Photoroom among its customers. Yet, there are still challenges in convincing large enterprises to fully adopt ‘vibe coding’ for mission-critical projects. The introduction of the Business tier could bridge this gap and help Lovable tap deeper into enterprise budgets.
To date, over 10 million projects have been created using Lovable’s platform, underlining its broad appeal and utility.
AI Startups in Europe: A Growing Club
Reaching $100M ARR is a rare feat, especially among European AI startups. However, the trend is gaining momentum thanks to the ongoing AI boom. For example, B2B video platform Synthesia recently joined the $100M ARR club, though it took several years longer to achieve this compared to Lovable’s rapid ascent.
What’s Next for Lovable?
With robust growth, a focus on user-centric product development, and a clear path toward enterprise adoption, Lovable is well-positioned to continue shaping the future of AI-driven app and website creation. Its ability to balance rapid revenue growth with product quality and community-building will be critical as it scales further.
