AI code-testing startup Blacksmith has closed a $45 million Series B round that values the company at $550 million — nearly ten times the $60 million valuation it held less than a year ago when it raised a $10 million Series A.
The round, announced in August 2026, was led by Peak XV Partners, with participation from existing investors GV and Y Combinator. Total funding now stands at $58.5 million.
Founded in 2024, Blacksmith helps companies build, test, and verify software before it reaches production. Co-founder and CEO Aditya Jayaprakash said the startup has grown from more than 700 customers to more than 5,000 in under a year, with clients including Mercury, Supabase, Clerk, Ashby, and Expensify. Revenue has grown more than tenfold over the same period, reaching “tens of millions of dollars,” though Jayaprakash declined to provide a specific annualized figure. Some of its largest customers now spend more than $1 million a year on the platform. The company has also expanded its workforce from 10 to around 30 employees.
The growth comes as AI coding tools — including Cursor, OpenAI’s Codex, and Anthropic’s Claude Code — have made it significantly faster to generate software. Jayaprakash argues that speed has created a new pressure point. “Validating code is still a bottleneck, and it’s an even bigger bottleneck because people are writing even more,” he said.
Blacksmith started as a cloud provider for continuous integration workloads and has since added Codesmith, an AI coding agent that can automatically fix failed code checks. The company says it competes on testing speed and affordability against a crowded field that includes GitHub Actions, Cursor Automations, AWS, Microsoft Azure, Google Cloud, and validation features built into Codex and Claude Code.
Jayaprakash said Blacksmith plans to expand into a broader suite of tools aimed at helping developers write, validate, and merge software faster.
Source: TechCrunch