AI Code-Testing Startup Blacksmith's Valuation Jumps Almost 10x in Less Than a Year

Blacksmith, a startup founded in 2024, helps companies build, test, and verify software before production. It raised a $45 million Series B led by Peak XV Partners, with participation from GV and Y Combinator, bringing total funding to $58.5 million. The valuation jumped to $550 million from $60 million in its Series A less than a year ago. The company now serves over 5,000 customers, including Mercury, Supabase, Clerk, Ashby, and Expensify, up from 700 customers. Co-founder and CEO Aditya Jayaprakash said that validating code is a bottleneck, especially with AI coding tools like Cursor, OpenAI's Codex, and Anthropic's Claude Code generating more code. Blacksmith started as a cloud provider for continuous integration (CI) workloads and expanded with Codesmith, an AI coding agent that fixes failed code checks. The startup reached a $10 million annualized revenue run rate with 10 employees and now has about 30 employees and revenue in the tens of millions of dollars. Competitors include GitHub Actions, Cursor Automations, and services from AWS, Azure, and Google Cloud.