🚀 Swedish Unicorn Lovable Hits $100M ARR in Just 8 Months Amid AI-Powered Growth
Stockholm, July 23, 2025 – Lovable, the Swedish "vibe coding" startup that achieved unicorn status last week, has now crossed $100 million in annual recurring revenue (ARR) – a rare feat for a company launched in late 2024.
Key Milestones
- Record Speed: Reached centaur status ($100M ARR) faster than European peers (e.g., Synthesia took 8 years).
- User Growth: 2.3M+ active users, 180K paying subscribers – with just 45 employees (~$2.2M revenue per employee).
- Enterprise Push: New Business tier (replacing Teams) adds SSO, private projects, and data opt-outs to attract larger clients like Klarna and HubSpot.
Strategic Pivot
In June, Lovable voluntarily shed $1.5M ARR overnight by downgrading Team-tier users to its cheaper Pro plan (now with collaboration tools). CEO Anton Osika framed this as a long-term play:
> "We’re prioritizing sustainable adoption over short-term revenue. Enterprises need tailored solutions, not just prototyping tools."
Market Context
- AI Tailwinds: Lovable’s no-code app builder leverages generative AI to streamline development, mirroring demand seen by rivals like Synthesia (Nvidia-backed, hit $100M ARR in April).
- European Unicorn Boom: Joins a growing list of capital-efficient startups (e.g., Mistral AI) scaling rapidly despite smaller teams.
Challenges Ahead
While 10M+ projects have been created on Lovable, enterprise adoption remains its next hurdle. Current use cases skew toward prototyping, but the new Business tier aims to expand into full-scale production.
What’s Next?
With 14 open roles and a focus on enterprise features, Lovable signals aggressive expansion. Observers speculate whether it can maintain its velocity as competitors like Webflow and Figma enhance AI capabilities.
