CodeRabbit, an AI-powered code review platform, announced Tuesday it has closed a $60 million Series B funding round, pushing its valuation to $550 million. The capital injection, led by Scale Venture Partners, aims to support the company's expansion in a market increasingly challenged by the complexities of AI-generated code.
The round saw participation from NVentures, Nvidia’s venture capital arm, and existing investors including CRV. This latest funding brings CodeRabbit's total capital raised to $88 million since its inception in early 2023.
Founded by Harjot Gill, who previously sold his startup Netsil to Nutanix in 2018, CodeRabbit emerged from Gill's observation of increasing bottlenecks in code review as remote engineering teams adopted AI code generation tools like GitHub Copilot. Gill's prediction, according to industry reports, indicates that while AI coding assistants boost output, they often produce buggy code, necessitating extensive corrections.
CodeRabbit reports over $15 million in annual recurring revenue (ARR), experiencing 20% month-over-month growth, according to Gill. The platform is utilized by corporate clients such as Chegg, Groupon, and Mercury, alongside more than 8,000 individual developers. Gill states that companies leveraging CodeRabbit can reduce human involvement in code review by half.
The AI code review sector is becoming competitive, with companies like Graphite recently securing $52 million in Series B funding and Greptile reportedly in Series A discussions. While major AI coding assistants also offer integrated review capabilities, Gill suggests customers will favor comprehensive standalone solutions like CodeRabbit in the long term. Despite the growth in AI-powered review tools, the unreliability of some AI-generated code has prompted new roles, such as "vibe code cleanup specialists," to address quality issues in development workflows.
