Aug 12 (Reuters) - AI code review startup CodeRabbit said on Wednesday it had raised $143 million in a funding round that valued it at $1.5 billion.
The round was co-led by Atomico and Smash Capital, with participation from new investors including BMW i Ventures, Datadog and Hirtle Callaghan.
Investors were betting that the rapid adoption of AI coding tools and vibe coding would increase demand for software monitoring and code fixes as firms grappled with a surge in AI-generated code.
CodeRabbit helps
developers improve code quality and work more efficiently. It also explains the impact of each change and monitors production code for vulnerabilities and maintainability risks.
The latest funding comes less than a year after CodeRabbit's $60 million Series B round. Luca Eisenstecken, partner at venture capital firm Atomico, will join the company's board.
"As AI becomes critical infrastructure for the global economy, organisations will increasingly need independent governance layers that can validate software regardless of which model produced it," said Eisenstecken.
San Francisco-headquartered CodeRabbit has recently opened an office in London and plans to expand further in Europe, as well as enter Japan and other Asian markets.
The funding also comes as increasingly capable AI models enable more sophisticated cyberattacks, prompting companies to strengthen their security, examine more code for vulnerabilities and take steps to prevent attacks.
CodeRabbit said it conducts more than 2 million code reviews a week and has more than 17,000 customers including Nvidia, BMW, JFrog, Trivago, Adyen and Indeed.
CodeRabbit also plans to invest more than $10 million over the next 12 months to keep its AI code review and agent capabilities free for open-source projects and maintainers.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Maju Samuel)
