CodeRabbit Raises $60 Million to Expand AI-Powered Code Review Platform
Harjot Gill, founder of CodeRabbit and former CEO of FluxNinja, identified a growing challenge in software development: as AI-assisted code generation tools like GitHub Copilot gained traction, the resulting code often contained bugs that significantly slowed down the code review process.
In early 2023, Gill launched CodeRabbit, an AI-driven code review platform designed to alleviate this bottleneck. The startup quickly acquired FluxNinja, merging its observability expertise with CodeRabbit’s AI capabilities.
Rapid Growth Amid Rising Demand
CodeRabbit has experienced rapid expansion, growing at a rate of 20% per month and achieving over $15 million in annual recurring revenue (ARR). The platform currently supports more than 8,000 companies, including notable clients such as Chegg, Groupon, and Mercury.
By deeply understanding each company’s unique codebase, CodeRabbit identifies bugs and offers detailed feedback, effectively serving as an automated colleague. Gill claims that companies using CodeRabbit can reduce the human resources dedicated to code review by approximately 50%, streamlining a traditionally time-intensive task.
Recent Funding Round and Market Position
On September 16, 2025, CodeRabbit announced a $60 million Series B funding round led by Scale Venture Partners, with participation from NVentures—Nvidia’s venture capital arm—and returning investors including CRV. This round increases CodeRabbit’s total funding to $88 million and places its valuation at $550 million.
Despite competition from startups like Graphite, which raised $52 million in a Series B led by Accel earlier this year, and Greptile, reportedly negotiating a $30 million Series A with Benchmark, CodeRabbit positions itself as a more comprehensive, standalone alternative to AI code review features embedded in broader coding assistants such as Anthropic’s Claude Code and Cursor.
Challenges and Industry Implications
While AI tools like CodeRabbit help reduce errors in AI-generated code, complete reliance on automated fixes remains premature. The persistent presence of bugs and “unusable” code has led to the emergence of specialized roles focused on cleaning up AI-generated code within organizations.
Gill’s bet on a dedicated AI code review platform reflects a broader industry trend toward specialized AI solutions tailored to complex development workflows. The startup’s ongoing growth and client adoption suggest strong market demand, though the competitive landscape and evolving AI capabilities warrant close observation.
FinOracleAI — Market View
CodeRabbit’s successful $60 million Series B round and rapid revenue growth highlight strong market validation for AI-powered code review solutions amid rising AI-generated code adoption. The company’s ability to reduce manual review workload by half addresses a critical pain point for developers, supporting positive near-term growth prospects.
However, competition from both specialized startups and integrated AI coding assistants poses execution risks. Investors and market participants should monitor CodeRabbit’s ability to maintain its technological edge and client retention as AI coding tools evolve.
Impact: positive
