According to Fortune, Swedish AI startup Lovable has reached $200 million in annual recurring revenue, doubling its total from just four months earlier. CEO Anton Osika announced the milestone at Slush 2025 in Helsinki, revealing that enterprise customers now make up about half their user base. The company, founded in 2023, launched its AI-powered app-building product in late 2024 and is already seeing multi-million-dollar enterprise deals emerge. Lovable uses what it calls “vibe-coding” where users describe apps in plain language and the AI writes the actual code. The startup recently raised $200 million in Series A funding led by Accel, valuing the company at $1.8 billion, and has hired senior executives from Notion, Dropbox, and Meta to support its expansion.
The enterprise pivot
Here’s the thing about hitting $200 million ARR that quickly – you can’t sustain that growth with individual users alone. The enterprise shift isn’t just opportunistic, it’s necessary. Osika’s comment about half their customers coming from enterprises is telling. Basically, they’re following the classic land-and-expand model where individuals bring tools into companies, then those tools become department-wide, then company-wide. But going enterprise means competing with Microsoft, Google, and established players who have deeper pockets and existing relationships. Can a Swedish startup really outmaneuver them?
Vibe coding meets reality
The whole “vibe-coding” concept sounds like marketing fluff, but there’s something real happening here. We’re seeing the democratization of development tools reach a new level. When you can describe what you want in plain English and get working code, that changes who can build software. But here’s my question: how much of this is truly production-ready versus just prototyping? Enterprises don’t want prototypes – they need robust, scalable, secure applications. Lovable’s promise to handle the entire lifecycle from building to hosting to maintenance is ambitious, to say the least.
The European advantage
Osika’s insistence on staying in Europe rather than moving to San Francisco is fascinating. He’s basically betting that talent and mission can overcome geography. And he might be right – we’re seeing more European tech success stories lately. The hiring spree bringing senior leaders from the Bay Area to Stockholm is impressive. But let’s be real – opening hubs in San Francisco and Boston suggests they know they still need US presence. The question is whether they can maintain their European culture while expanding globally.
What comes next?
At $1.8 billion valuation with $200 million ARR, Lovable is growing insanely fast. But now the real test begins. Enterprise sales cycles are longer, requirements are more complex, and the competition is fierce. Their hiring of experienced executives from established companies suggests they’re preparing for this next phase. The AI development tools space is getting crowded fast, and while Lovable has momentum, they’ll need to prove they can deliver enterprise-grade reliability and support. I’m curious to see if they can maintain this trajectory or if they’ll hit the typical startup growing pains.
