Emergent, an India-based AI startup focused on “vibe-coding” – a new approach to app development – has seen its valuation surge to $300 million following a $70 million Series B funding round. This dramatic increase, less than four months after a $23 million Series A, highlights the intense investor interest in AI-powered development tools.
Rapid Growth and Investor Confidence
The round was co-led by SoftBank’s Vision Fund 2 and Khosla Ventures, with participation from Prosus, Lightspeed Venture Partners, Together, and Y Combinator. Emergent’s valuation has tripled in just months, jumping from $100 million post-money to $300 million. This fast-paced funding reflects the company’s claims of strong revenue growth: it reports $50 million in annual recurring revenue (ARR) and over 5 million users across 190+ countries. Emergent is targeting ARR exceeding $100 million by April 2026.
What is “Vibe-Coding”?
Emergent, like similar platforms such as Lovable, Cursor, and Replit, uses AI agents to streamline the entire app development process – from design to deployment. The goal is to allow entrepreneurs and small businesses to build and launch products without relying on large, expensive engineering teams.
This approach lowers the barrier to entry for app creation, enabling users with limited coding experience to bring their ideas to life. Emergent founder Mukund Jha says the company sees “massive demand” across the U.S., Europe, and India, particularly with its newly launched mobile app-building service.
Global Presence with Indian Roots
While headquartered in San Francisco, the majority (70 out of 75) of Emergent’s workforce operates from an office in Bengaluru, India. The startup is actively hiring across both locations, signaling continued expansion. This structure showcases a growing trend: Indian tech companies scaling globally while maintaining a strong operational base in India.
SoftBank Returns to Indian Investments
The deal also marks SoftBank’s renewed focus on Indian startups, following a pause in significant investments nearly four years ago. This is a key development, as SoftBank’s Vision Fund has historically played a major role in shaping the Indian tech landscape.
Emergent plans to use the fresh funding to expand its team, accelerate product development, and strengthen its presence in key markets. The company’s rapid growth and investor confidence signal a shift in the app development landscape, where AI is becoming increasingly central to lowering costs and speeding up production.
The future of software may not be written in lines of code, but rather through intuitive AI interfaces that require minimal traditional programming skills. This trend raises questions about the long-term role of software engineers and the democratization of app creation.
