What's Happening?
Rocket.new, an Indian startup specializing in AI-powered app development, has raised $15 million in a seed round led by Salesforce Ventures, with participation from Accel and Together Fund. The company aims to challenge existing vibe-coding platforms by enabling users to create full, production-ready applications from natural-language prompts. Since its launch, Rocket.new has attracted over 400,000 users globally, including 10,000 paid subscribers, and generated $4.5 million in annual recurring revenue. The startup plans to scale its revenue to $20-$25 million by the end of the year and $60-$70 million by mid-next year. Rocket.new is establishing a U.S. headquarters in Palo Alto to better serve its American users, who contribute 26% of its revenue.
Why It's Important?
The investment in Rocket.new highlights the growing interest in AI-driven app development, which promises to streamline the creation of complex applications without extensive coding knowledge. This development could significantly impact the software industry by reducing the need for traditional development roles and accelerating product development cycles. Companies like Meta, PayPal, and KPMG are already utilizing Rocket.new for personal projects, indicating a shift towards AI-assisted development. The U.S. market's substantial contribution to Rocket.new's revenue underscores the potential for further growth and adoption of AI technologies in app development.
What's Next?
Rocket.new plans to use the seed funding to enhance its go-to-market strategy, deepen its presence in key markets, and accelerate research and development on proprietary models. The company aims to double its engineering and product staff in India over the next 12 months to support growth. As Rocket.new continues to refine its platform, it may attract more enterprise clients seeking efficient app development solutions, potentially reshaping the competitive landscape of the software industry.
