AI Code Review Startup CodeRabbit Hits $550M Valuation After $60M Raise
▼ Summary
– Harjot Gill founded CodeRabbit in 2023 after noticing that AI-generated code was creating bottlenecks in code reviews.
– CodeRabbit is an AI-powered code review platform that helps catch bugs and provides feedback, enabling companies to reduce human code-review efforts by half.
– The startup has grown rapidly, achieving over $15 million in annual recurring revenue and a 20% monthly growth rate.
– CodeRabbit raised a $60 million Series B round, valuing the company at $550 million, with participation from investors like Scale Venture Partners and NVentures.
– Despite its success, AI-generated code remains unreliable, leading to new roles like “vibe code cleanup specialists” to address errors.
Harjot Gill noticed something interesting while leading FlexNinja, an observability company he co-founded. His remote engineering team had begun using GitHub Copilot for AI-assisted code generation. This shift made one thing clear to him: the surge in AI-generated code would inevitably create new bottlenecks during the review process.
That insight led Gill to launch CodeRabbit, an AI-powered code review platform, in early 2023. The new venture eventually absorbed FlexNinja. His prediction proved accurate, developers now regularly use AI coding assistants, but the output often contains bugs, requiring significant time and effort to correct.
CodeRabbit helps identify many of these errors early. According to Gill, the business has been expanding rapidly, with monthly growth hitting 20% and annual recurring revenue now exceeding $15 million.
Investors have taken note of this impressive trajectory. The startup recently announced a $60 million Series B funding round, boosting its valuation to $550 million. Scale Venture Partners led the investment, with participation from NVentures, Nvidia’s venture capital arm, and returning backers like CRV. This brings CodeRabbit’s total funding to $88 million.
The platform is already being used by companies such as Chegg, Groupon, and Mercury, along with more than 8,000 individual developers. It helps streamline the traditionally tedious process of code review, which has become even more time-intensive due to the rise of AI-generated code.
Gill describes CodeRabbit as functioning like a collaborative teammate. Because it understands a company’s entire codebase, it can pinpoint bugs and offer contextual feedback. He claims that organizations using the tool can reduce their human code-review workforce by half.
Competition in the AI code review space is heating up. Rivals include Graphite, which closed a $52 million Series B earlier this year led by Accel, and Greptile, reportedly in discussions for a $30 million Series A with Benchmark.
While leading AI coding assistants like Anthropic’s Claude Code and Cursor also provide code review features, Gill believes customers will eventually prefer a dedicated solution. He argues that CodeRabbit offers greater depth and technical breadth compared to bundled offerings.
Whether that vision proves true long-term remains to be seen. For now, thousands of developers are willing to pay $30 per month for the service.
Even as AI code review tools gain traction, they still can’t be fully trusted to clean up flawed or “unusable” code produced by AI systems. This reliability gap has even spurred the emergence of a new corporate role: the vibe code cleanup specialist.
(Source: TechCrunch)
