The surge in Emergent’s ARR, one of the fastest scale-ups among Indian AI startups, came on the back of increased adoption of its platform by over 50,000 active developers and teams worldwide. According to the company, its AI tools have enabled users to build full-stack applications 10 times faster, from ideation to deployment, driving viral growth through word-of-mouth referrals and integrations.
In January, Emergent raised $70 million from Khosla Ventures and SoftBank at a $300-million valuation, bringing its total funding to $85 million and fuelling product expansions like collaborative multiplayer editing and one-click deployment pipelines.
The startup’s freemium model has seen high uptake among indie hackers, solopreneurs, and early-stage startups, with paid conversion rates hitting 25% as users scale from prototypes to production apps. The platform’s Vibe engine, which translates natural language prompts into deployable codebases with UI and backend logic, has been important in this growth.
Jha said that Emergent is focused on SMEs and professional consumers as they are much faster to adopt new technology because they see value. But it will look at chasing enterprises in its next phase of growth.
“The prosumer category has been important because when we were early, we wanted rapid feedback from users. As we mature, we will go to enterprises. We already have pilots going on and a ton of incoming interest,” he told ET.
The startup has generated over a million lines of production-ready code on a daily basis, and powered over 500 live customer applications across the fintech, ecommerce, and SaaS verticals.
Alongside a rapid growth in ARR, Jha pointed out that the company’s gross margins were improving with customer acquisition costs going down.
Lovable, one of Emergent’s key rivals, had hit the $100 million ARR mark in July 2025 — eight months after it crossed the $1-million mark. The Swedish company was founded in 2023.
A company’s revenue run rate projects its future annual revenue based on the current quarterly or monthly revenue. An increasing ARR, thus, represents business growth. On Monday, Anthropic, the maker of the Claude chatbot, said its revenue run rate in India had doubled in the past four months.
Jha said that even though investors fear a bubble, the broader AI space is massively undervalued. “We are trying to go after a $50 trillion total addressable market (TAM). If everybody is enabled to build software quickly, the productivity gains across organisations, from drug discovery to longevity to space travel, will be immense,’’ Jha explained.
Emergent’s competitors are sitting on high valuations. Replit, backed by Google and Andreesen Horowitz, is nearing $9 billion, Bloomberg reported in January. Another big name in the space, Lovable, was valued at $6.6 billion after its December round, while Cursor raised $2.3 billion at a $29.3 billion valuation as Coatue, Nvidia, and Google joined its cap table.
On the sidelines of the India AI Impact Summit, Emergent announced the launch of its mobile app for iOS and Android. The app mirrors full desktop functionality, allowing developers to iterate on code, preview UIs in real-time, and collaborate remotely from any device.
Emergent is now among the top 10 global vibe coding platforms by revenue. In the coming quarter, the company plans to include API access for enterprise integrations, advanced security features like SOC 2 compliance, and expansion into non-English prompts to tap Indic language developers.