Indian AI Coding Startup Emergent Reaches $1.5 Billion Valuation

Indian AI coding startup Emergent has raised $130 million in a Series C funding round at a $1.5 billion post-money valuation, a five-fold jump in six months. The funding round was led by private equity firm Creaegis. New investors MNI Ventures-Claypond, Sentinel Global, and existing backers Khosla Ventures, SoftBank’s Vision Fund 2, Lightspeed, and Y Combinator also participated.

The deal takes Emergent’s total funding to $230 million. The startup had previously raised a $70 million Series B at a $300 million valuation in January. AI coding has attracted hordes of investors, with startups such as Lovable, Replit, and Cursor raising billions in funding to develop tools that allow developers to speed up their work.

AI labs such as OpenAI and Anthropic have also pushed deeper into coding. Emergent is looking to gain a share of this crowded market by targeting entrepreneurs looking to start new businesses and small and medium-sized companies that have traditionally relied on email, spreadsheets and messaging apps to run their operations. “Our thesis has always been to build a production-grade application for serious builders,” Emergent co-founder and chief executive Mukund Jha told TechCrunch in an interview.

“So you’re basically getting an engineering team in a box.” Jha said the startup has reached an annual run-rate revenue of $120 million, up 70% in the last four months, and has more than 200,000 paying customers. Jha started Emergent with his brother Madhav Jha (CTO) in June last year. Customers include trucking companies building software to track shipments; factories; construction businesses creating enterprise resource planning systems; and property managers developing internal customer management tools.

North American customers account for about a third of Emergent’s revenue, Europe makes up another third, and the rest comes from other markets, Jha told TechCrunch. India accounts for about 8% to 9%. Emergent’s focus on small businesses and entrepreneurs pits it directly against Replit, which Jha described as the startup’s closest rival.

He sought to distinguish Emergent from developer-focused coding tools such as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor, arguing that non-technical users need a platform that handles deployment, hosting, testing, and debugging alongside the work of programming. However, Jha acknowledged that design remains a weakness, pointing out that many websites built using AI tools tend to look similar. Emergent plans to use the fresh capital to accelerate product development and research, including improving the success rate of applications built on its platform and its core AI agent workflows.