Blacksmith Jumps to $550M Valuation With $45M Series B Led by Peak XV Partners.
Blacksmith Raises $45M Series B to Tackle AI's Testing Bottleneck:
Peak XV Partners leads a round that values the CI and code-validation startup at $550 million, as AI-generated code outpaces the tools built to check it.
$45M: Series B Raised
$550M: New Valuation
5,000+: Customers
1: A Fast Climb for a Young Startup:
Blacksmith just closed a $45 million Series B, and the number that stands out isn't the raise itself — it's how fast the company's valuation moved to get there.
The round, led by Peak XV Partners, values Blacksmith at $550 million. Less than a year ago, the company was valued at just $60 million when it closed a $10 million Series A. Existing backers GV and Y Combinator returned for this round, pushing Blacksmith's total funding to $58.5 million since its founding in 2024.
Blacksmith's customer base has grown just as quickly. The company says it now serves more than 5,000 customers, including Mercury, Supabase, Clerk, Ashby, and Expensify — up from over 700 customers less than a year ago.
2: Why Investors Are Betting on Code Validation:
AI coding tools have made writing software faster than ever. They haven't made it easier to trust.
Tools like Cursor, OpenAI's Codex, and Anthropic's Claude Code have dramatically lowered the barrier to generating code. But more code doesn't automatically mean more reliable code, and co-founder and CEO Aditya Jayaprakash says that gap is exactly where Blacksmith is positioning itself.
Validating code is still a bottleneck, and it's an even bigger bottleneck because people are writing even more.
— Aditya Jayaprakash, Co-founder and CEO, Blacksmith
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Blacksmith began as a cloud provider for continuous integration workloads, running the builds and tests companies need before code reaches production. It has since expanded with Codesmith, an AI coding agent that automatically fixes failed code checks — a move that pushes the company beyond infrastructure and into the code-quality workflow itself.
3: Scaling Revenue With a Small Team:
Blacksmith's growth has come with notable capital efficiency. Jayaprakash said the company reached a $10 million annualized revenue run rate with just 10 employees, and has since grown its team to roughly 30 people while pushing revenue into the tens of millions annually. He didn't share a specific updated ARR figure, but noted that some of Blacksmith's largest customers now spend more than $1 million a year on the platform.
4: A Crowded Field, and a Bigger Roadmap:
Blacksmith isn't the only company chasing this problem — and it knows it. The competitive set is substantial: GitHub Actions, Cursor Automations, validation features built directly into Codex and Claude Code, a wave of other startups, and AI code-testing services from AWS, Microsoft Azure, and Google Cloud are all competing for the same workflow. Jayaprakash says Blacksmith is differentiating on the speed of testing and on affordability.
Looking ahead, Blacksmith plans to expand beyond CI and validation into a broader suite of coding tools — aiming to help developers write, validate, and merge software faster, all inside one platform.
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● $45M Series B led by Peak XV Partners; $550M valuation, up from $60M less than a year ago.
● 5,000+ customers today, up from 700+ under a year ago, including Mercury, Supabase, Clerk, Ashby, and Expensify.
● Started as CI infrastructure; expanded into AI-driven code fixing with Codesmith.
● Team of ~30 generating tens of millions in annual revenue, with some customers paying $1M+/year.
● Plans to broaden into a full write-validate-merge coding suite.
Shipping AI-Generated Code Faster Doesn't Have to Mean Shipping It Riskier.
Blacksmith's raise is a signal, not a one-off: as coding assistants push output volume up, validation is becoming the real constraint on how fast teams can safely ship. That same pressure shows up beyond CI pipelines — in every workflow where AI now generates more than a team can manually review.
Otherworlds AI's Agent+ platform is built for that reality, giving enterprises a managed way to deploy, monitor, and govern AI agents across their operations without needing to stitch together point solutions themselves.
Learn how Agent+ helps your team validate and scale AI-driven work at otherworldsai.com.
