CodeRabbit Secures $60 Million Series B, Valued at $550 Million Amid AI Code Review Surge

CodeRabbit, the AI‑powered code review platform founded by former FluxNinja CEO Harjot Gill, announced a $60 million Series B financing that values the company at $550 million. The startup, launched in early 2023 after Gill observed widespread adoption of AI coding assistants like GitHub Copilot, now serves more than 8,000 businesses, including Chegg, Groupon and Mercury. Riding rapid growth—20 percent month‑over‑month and over $15 million in annual recurring revenue—CodeRabbit aims to cut human code‑review effort in half. The round was led by Scale Venture Partners with participation from NVentures and CRV, while competitors such as Graphite and Greptile also pursue funding.

Founding Vision and Market Need

Harjot Gill, who previously co‑founded and ran the observability startup FluxNinja, noticed a growing trend among remote engineering teams: developers were increasingly relying on AI coding assistants, notably GitHub Copilot, to generate code. While these tools accelerated development, the output often contained bugs, creating a new bottleneck in the code‑review process. Recognizing this second‑order problem, Gill launched CodeRabbit in early 2023 as a dedicated AI‑driven code review solution.

Rapid Growth and Business Traction

Since its inception, CodeRabbit has experienced striking momentum, expanding at roughly 20 percent each month. The platform now generates more than $15 million in annual recurring revenue (ARR) and counts over 8,000 businesses among its customers. High‑profile users include education technology provider Chegg, e‑commerce platform Groupon, and fintech firm Mercury. According to Gill, CodeRabbit’s deep understanding of a company’s codebase allows it to pinpoint bugs, offer targeted feedback, and effectively act as a virtual colleague, potentially halving the number of human reviewers needed for a given codebase.

Funding Milestone and Investor Support

The latest financing round brings CodeRabbit’s total funding to $88 million. The $60 million Series B was led by Scale Venture Partners, with strategic participation from NVentures—Nvidia’s venture arm—and existing backer CRV. This infusion values the startup at $550 million, underscoring investor confidence in the market opportunity for specialized AI code‑review tools.

Competitive Landscape

CodeRabbit operates in a competitive arena that includes both pure‑play startups and integrated AI assistants. rivals such as Graphite recently closed a $52 million Series B led by Accel, while Greptile is reported to be in talks for a $30 million Series A with Benchmark. Major AI coding assistants, including Anthropic’s Claude Code and Cursor, have begun offering code‑review capabilities as part of broader suites. Gill maintains that a focused, standalone solution like CodeRabbit can deliver deeper technical breadth than bundled offerings.

Pricing and Customer Value

The platform is priced at $30 per month per developer, a cost that many organizations find justified given the time savings and quality improvements it delivers. While AI‑generated code remains imperfect, CodeRabbit’s ability to catch errors early helps mitigate the risk of shipping buggy software and reduces the need for extensive manual cleanup.

Outlook

With solid revenue growth, a strong customer roster, and substantial new capital, CodeRabbit is positioned to expand its market share as more development teams adopt AI‑assisted coding. The company’s focus on a dedicated, high‑precision code‑review experience aims to address a critical pain point that broader AI coding tools have yet to fully resolve.