CodeRabbit raises $60M, valuing the 2-year-old AI code review startup at $550M 

Harjot Gill ran Fluxninja, a perceptibility startup that he founded for a few years after selling his first startup Netsil to Nutanix In 2018, when he noticed a curious trend.

“We had a team of external engineers who started the AI ​​code generation on Github Copilot,” Gill told WAN. “We saw that adoption took place, and it was very clear to me that it will cause bottlenecks in the code review as a second-order effect.”

At the beginning of 2023, Gill Codeerabbit started, an AI-driven code assessment platform, and the Flexninja acquired.

Gill’s prediction has come true: developers now regularly use AI coding assistants to generate code, but the output is often buggy, forcing engineers to spend a lot of time on corrections.

Coderabbit can help catch some of the mistakes. The company has grown by 20% per month and now earns more than $ 15 million in annual income (ARR), according to Gill.

Investors find the growth of the startup exciting. On Tuesday, Coderabbit announced that it collected a series B of $ 60 million, so that the company was appreciated at $ 550 million. De Ronde, which brought the total financing of the startup to $ 88 million, was led by scale connection partners with participation of nentures, Nvidia’s risk capital and returning investors including CRV.

Coderabbit helps companies such as Chegg, Groupon and Mercury, together with more than 8,000 other companies, to save time on the famous frustrating task of code evaluation, which has become even more time-consuming with the rise of AI-generated code.

Since Coderabbit understands the codebase of a company, it can identify bugs and give feedback, behave like a colleague, Gill said. He added that companies that use Coderabbit can reduce the number of people who work on code review by half.

As with most areas of AI, Coderabbit has competition. Startup rivals include Graphite, which has protected a series B of $ 52 million, led by Accel earlier this year, and Greptile, which we reported, is in conversation for a series A round of $ 30 million with benchmark.

While leading AI coding assistants such as the Claude Code and Cursor of Anthropic also offer AI-driven code assessment options, Gill gambles that customers prefer a long-term range. “Codeerabbit is much more extensive in terms of depth and technical breadth than bundled solutions,” he said.

It is still to be seen whether his prediction will prove to be correct. But for the time being, thousands of developers clearly pay codingabbit $ 30 per month.

Even with the growing popularity of AI code -assessment tools such as Coderabbit, AI solutions cannot still be fully trusted to repair the bugs and “unusable” code written by AI. The unreliability of code generated by AI has led to a new company role: the Vibe Code clean -up specialist.