CodeRabbit Raises $60M in Series B Funding, Valuation Soars to $550M

San Francisco, September 17, 2025 — AI-powered code review platform CodeRabbit announced today it has secured $60 million in Series B funding, propelling its valuation to $550 million. The round was led by Scale Venture Partners, with participation from Nvidia's NVentures and returning investor CRV. This brings CodeRabbit's total funding to $88 million.

Image source note: The image is AI-generated, and the image licensing service provider is Midjourney.

Addressing the AI-Generated Code Challenge

Founded in early 2023 by Harjot Gill, a former co-founder of FluxNinja (which CodeRabbit later acquired), the company emerged as a solution to the growing bottleneck in code reviews. Gill observed that while tools like GitHub Copilot accelerated code creation, they created new challenges in quality assurance.

"As more developers use AI to write code, we're seeing an epidemic of subtle errors," Gill explained. "CodeRabbit acts as an intelligent colleague that not only spots issues but explains them in context."

Market Traction and Client Impact

The platform has demonstrated impressive growth:

• 20% month-over-month user growth
• Annual recurring revenue (ARR) exceeding $15 million
• 8,000+ enterprise clients including Chegg, Groupon, and Mercury

Early adopters report reducing their code review teams by 50% while maintaining quality standards. "What previously took three engineers two days now takes one engineer four hours," noted a technical lead at a Fortune 500 client who requested anonymity.

Competitive Landscape

The AI code review space is heating up:

• Graphite raised $52M in Series B this year
• Greptile is negotiating a $30M Series A with Benchmark
• Established players like Anthropic's Claude Code and Cursor offer basic review features

Gill remains confident: "Packaged solutions can't match our depth. We're seeing customers migrate from all-in-one platforms because specialized tools deliver superior results."

The Rise of 'Code Cleanup' Specialists

The funding comes amid industry recognition of a new phenomenon—AI-generated code requiring significant human correction. Some firms have begun hiring dedicated "code cleanup" specialists to address this challenge. "It's ironic," observed tech analyst Maria Chen. "We automated coding only to create new manual jobs fixing the automation."

Key Points:

🌟 $60M Series B at $550M valuation with Scale VP leading 💻 Reduces code review teams by 50% through AI analysis 🚀 20% monthly growth, serving 8K+ enterprises ⚡ Faces competition from Graphite ($52M raised) 🧹 Spawned new "code cleanup" job category