Lovable, a fast-growing AI startup based in Stockholm, has become Europe’s latest unicorn after securing US$200 million in a Series A funding round led by Accel, valuing the company at US$1.8 billion.

The company, which helps users create websites and applications using natural language prompts, has reached this milestone just eight months after its launch.

According to TechCrunch, Lovable operates similarly to other AI coding platforms such as Cursor, which leverage large language models to support software development.

The company reports more than 2.3 million active users, most of whom use the service for free.

However, CEO Anton Osika recently stated that Lovable now has over 180,000 paying subscribers and has generated US$75 million in annual recurring revenue (ARR) within seven months.

The round also saw participation from existing investors including 20VC, byFounders, Creandum, Hummingbird, and Visionaries Club.

Earlier in February, Creandum led a US$15 million pre-Series A round when Lovable was reporting US$17 million ARR, 30,000 paying users, and a spend of just US$2 million.

Lovable’s rapid growth has been achieved with a lean team of 45 full-time staff.

The latest funding round also attracted notable angel investors such as Sebastian Siemiatkowski (CEO of Klarna), Job van der Voort (CEO of Remote), Stewart Butterfield (Slack co-founder), and Dharmesh Shah (HubSpot co-founder).

The platform’s traction appears to come mainly from non-technical users, who create app and website prototypes that can later be developed further by technical teams.

The company says over 10 million projects have been built on its platform so far.

Osika also recently shared on X that he is now an angel investor in a startup created using Lovable, reportedly Stardust, an ad-testing platform, although this remains unconfirmed.

In another example of the platform’s business use, he cited a large Brazilian edtech firm that built an app using Lovable and generated US$3 million in revenue within 48 hours.

Lovable has already secured enterprise clients including Klarna and HubSpot, and aims to evolve into a platform capable of supporting the creation of production-grade software for businesses.

Featured image credit: Edited by Fintech News Nordics, based on image by Markus Winkler via Unsplash