Lovable Reaches $100M ARR - Swedish Unicorn Success

Lovable Achieves Centaur Status

Just under a week after attaining “unicorn” status in Europe, Swedish startup Lovable, specializing in vibe coding, has now reached “centaur” status. This signifies annual recurring revenue (ARR) exceeding $100 million.

Rapid Growth and User Base

The company achieved this milestone remarkably quickly, within just eight months of its initial launch. This rapid ascent is attributed to the increasing demand for its AI-powered website and app builder.

Lovable currently boasts over 2.3 million active users. Recent reports indicate a subscriber base of 180,000 paying customers.

Impressive Efficiency

With a team of only 45 full-time employees, and an additional 14 positions currently open, Lovable demonstrates a noteworthy revenue-to-employee ratio.

Prioritizing Value Over Sales

While subscriptions are the primary revenue source for Lovable, the company is not solely focused on maximizing sales. CEO Anton Osika revealed on X that Lovable willingly forfeited $1.5 million in ARR in a single day.

This decision stemmed from migrating all users on the Team tier to the more affordable Pro tier, which now supports collaborative features.

Introducing the Business Tier

The Teams plan is being superseded by a new Business tier. This tier is positioned between the Pro and custom Enterprise options.

Key features of the Business tier include self-service capabilities, Single Sign-On (SSO), pre-designed templates, private project options, and the ability to exclude data from AI training.

Expanding Enterprise Adoption

Lovable already serves prominent clients such as Klarna, HubSpot, and Photoroom. However, broader adoption within large enterprises remains a challenge.

The introduction of the Business tier is intended to facilitate intermediary use cases and encourage businesses to utilize Lovable’s tools beyond prototyping, which is its current primary application.

Business Revenue Growth

The company has observed that businesses are generating substantial revenue from projects developed using Lovable’s platform.

To date, over 10 million projects have been created on the Lovable platform.

Joining the $100 Million ARR Club

The $100 million ARR milestone, while still relatively exclusive, particularly in Europe, is becoming more attainable due to the current surge in AI technologies.

Synthesia, a B2B AI video platform backed by Nvidia, also surpassed this benchmark in April, though its founding date was in 2017, predating Lovable’s late 2024 launch.