Blacksmith secures $45 million Series B, valuation soars to $550 million

Blacksmith, a startup that helps developers test and verify AI-generated code, announced a $45 million Series B financing that values the company at $550 million, a dramatic increase from the $60 million valuation assigned during its $10 million Series A less than a year earlier. The round was headed by Peak XV Partners, with existing backers GV and Y Combinator also contributing, taking total funding to $58.5 million.

Since its 2024 launch, Blacksmith has expanded its customer base from roughly 700 to over 5,000, including firms like Mercury, Supabase, Clerk, Ashby and Expensify. The firm now offers a cloud-based CI platform and Codesmith, an AI agent that can automatically fix failing code checks, and claims an annualized revenue run rate in the “tens of millions” with a workforce of about 30 employees. CEO Aditya Jayaprakash noted that its biggest clients spend more than $1 million annually on the service. Blacksmith faces competition from GitHub Actions, AI coding tools such as Cursor, OpenAI’s Codex, Anthropic’s Claude Code, and testing services from AWS, Microsoft Azure and Google Cloud, and plans to broaden its suite of coding tools to speed up development further.