Swedish startup Lovable has vaulted into the international spotlight after raising a record-breaking $200 million Series A round led by Accel, securing a $1.8 billion valuation less than a year after launch. Behind the headline numbers is a striking story of open-source ingenuity, viral community momentum, and a distinctly Swedish approach to democratizing software creation for the world.
From Side Project to Unicorn: The Lovable Story
The roots of Lovable trace back to mid-2023, when Stockholm-born engineer and entrepreneur Anton Osika—already a well-known figure in European AI circles—built an open-source project called GPT Engineer. Frustrated by the limitations of conventional code generation tools, Osika wanted to prove that large language models could do more than autocomplete snippets: could they build entire software products from a single prompt?
He launched GPT Engineer on GitHub almost as an experiment. The response was instantaneous and overwhelming. The tool exploded in popularity, ultimately gaining tens of thousands of GitHub stars and sparking global conversations about the frontiers of AI-driven software development. Osika’s demo posts on Twitter (now X) and LinkedIn gathered momentum, creating an early movement around the concept of “vibe coding”—building apps from natural language and intuition rather than traditional programming.
Osika soon teamed up with Fabian Hedin, who brought deep technical expertise and a solid track record in front-end engineering—he’d previously developed everything from proptech startups to computer interfaces for Stephen Hawking. The two were already acquainted, having worked together at the YC-backed AI startup Depict, another pillar of Sweden’s AI scene.
A Mission to Open Up Coding
Together, Osika and Hedin formally co-founded Lovable in late 2023. The company’s mission was unambiguous: make building software as accessible as chatting with a friend. The early version of their commercial product built on GPT Engineer’s foundation, branded initially as GPT Engineer App, and took platforms like Product Hunt and Hacker News by storm. Hundreds of paying users signed up overnight, leaving glowing reviews about a tool that let them create websites and apps just by describing what they envisioned.
Just a year later, in December 2024, the app was rebranded as Lovable. The platform made the technical invisible—turning user prompts into ready-to-use, fully functional web or mobile apps at a velocity and quality that surprised even seasoned developers. The company called this approach "vibe coding," positioning it as a leap beyond existing AI coding tools.
Viral Growth, Real Revenue
Lovable’s rapid rise wasn’t just about hype. Within three months of launch, the startup hit $17.5 million in annual recurring revenue (ARR); by month seven, this figure was $75 million. Their user base soared to 2.3 million active users and 180,000 paying subscribers, all managed by a lean team of just 45 employees. The product resonated not just with indie builders and hobbyists but also large enterprises—Klarna and HubSpot are among its business customers.
Community engagement was another differentiator. Lovable was built in public: Osika regularly shared technical insights, product vision, and user success stories on social channels, turning both users and other founders into evangelists. The company also prioritized user success and product stickiness, posting an 85% retention rate that rivals even global leaders like ChatGPT.
Europe’s Next Unicorn—And Its Distinct DNA
Lovable’s recent Series A round marks Sweden’s largest for a SaaS company, cementing Osika’s place among icons from the region like Klarna, Spotify, and King. Existing investors—including 20VC, byFounders, Creandum, Hummingbird, and Visionaries Club—doubled down. The round also attracted tech luminaries like Klarna CEO Sebastian Siemiatkowski and Slack co-founder Stewart Butterfield, testament to Lovable’s reputation throughout the international startup ecosystem.
Investors cite Osika’s ambition and Lovable’s unique European sensibility—combining open-source ethos, design-first product thinking, and a mission to unlock creativity for the 99% who can’t code. In interviews, Osika reflects on how his stints in academia, at CERN, and at competitive YC startups like Depict shaped his thinking: true impact comes from making the right technological leap and getting it into the hands of as many people as possible.
What’s Next for Lovable
With hundreds of millions now backing their vision, Lovable plans to double down on AI research, hire more engineers, and expand support for more complex, high-value software flows—all to ensure anyone, anywhere can bring their ideas to life.
By making software creation as simple as describing your idea, this Swedish powerhouse is giving a whole new generation the keys to build—and “vibe code”—the digital world.
