Blacksmith Raises $45M At $550M Valuation To Tackle AI Code Validation Bottleneck

Blacksmith raised a $45 million Series B led by Peak XV Partners, valuing the company at $550 million, a steep rise from the $60 million valuation it held less than a year ago. Existing investors GV and Y Combinator also participated, bringing total funding to $58.5 million.

Founded in 2024, Blacksmith helps companies build, test, and verify software before deployment. Co-founder and CEO Aditya Jayaprakash said the startup now serves more than 5,000 customers, including Mercury, Supabase, and Clerk, up from over 700 less than a year earlier. He attributed the growth to rising demand for code validation as AI coding tools such as Cursor, OpenAI’s Codex, and Anthropic’s Claude Code have accelerated code generation without guaranteeing its quality, making validation an increasingly significant bottleneck.

Blacksmith began as a cloud provider for continuous integration workloads before expanding into Codesmith, an AI coding agent capable of automatically fixing failed code checks. Jayaprakash said the company reached a $10 million annualized revenue run rate with just ten employees and has since grown its team to about thirty while increasing revenue into the tens of millions, with some large customers spending over $1 million annually. He said Blacksmith competes primarily on speed and affordability against rivals including GitHub Actions and major cloud providers, and plans to expand into a broader suite of coding tools.

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