In a significant development for the AI software industry, Rocket.new has secured $15 million in seed funding to accelerate its vision of transforming how applications are built. This substantial investment, led by Salesforce Ventures with participation from Accel and Together Fund, validates the growing demand for sophisticated AI-powered app development solutions that bridge the gap between prototype and production.
Breaking New Ground in AI-Powered App Development
Rocket.new represents a paradigm shift in software creation by enabling users to build complete, production-ready applications through natural-language prompts. Unlike competitors that primarily generate quick prototypes, this platform focuses on delivering enterprise-grade solutions. The startup’s rapid growth trajectory demonstrates the market’s readiness for more comprehensive AI development tools.
Impressive Traction and Market Validation
Since launching its beta platform just three months ago, Rocket.new has achieved remarkable milestones. The platform has attracted over 400,000 users across 180 countries, including more than 10,000 paying customers. This rapid adoption has translated into $4.5 million in annual recurring revenue, with ambitious targets of reaching $20-25 million by year-end and $60-70 million by June 2025.
The Vision Behind the Platform
Co-founder and CEO Vishal Virani emphasizes that Rocket.new addresses the critical “day two” problem in AI development. While many tools excel at initial code generation, they often struggle with iteration, maintenance, and deployment. Rocket.new’s comprehensive agentic system aims to eliminate these pain points by handling competitive research, product development, and scaling alongside code generation.
Technical Architecture and Competitive Advantage
The platform combines large language models from leading providers with Rocket.new’s proprietary deep learning systems. This unique architecture, trained on datasets from the founders’ previous venture DhiWise, delivers more robust applications than competing vibe-coding tools. Although initial generation takes approximately 25 minutes compared to competitors’ three-minute outputs, the resulting applications include all essential modules for immediate deployment.
Market Strategy and Business Model
Rocket.new has implemented a strategic pricing model that effectively targets serious users while maintaining healthy margins. Key aspects include:
- Free trial capped at one million tokens
- Monthly subscriptions starting at $25 for five million tokens
- Current gross margins of 50-55%, targeting 60-70%
- Primary markets: US (26% of revenue), Europe (15-20%), India (10%)
Investor Perspective and Future Roadmap
Salesforce Ventures investor Kartik Gupta highlighted the platform’s unique value proposition: “We saw a clear gap between the magic of AI code generation and the reality of making that code production-ready. Rocket.new is purpose-built to solve this problem of iteration, maintenance, and deployment at enterprise scale.”
With the new funding, Rocket.new plans to expand its 58-member team, establish a US headquarters in Palo Alto, and accelerate development of proprietary models. The startup’s organic growth through word-of-mouth and viral social posts demonstrates strong product-market fit, which the fresh capital will help scale systematically.
Frequently Asked Questions
What makes Rocket.new different from other AI coding platforms?
Rocket.new focuses on delivering production-ready applications rather than simple prototypes. The platform handles the entire development lifecycle, including iteration, maintenance, and deployment at enterprise scale.
How long does it take to generate an application?
The platform typically takes about 25 minutes to generate a complete application, which is longer than some competitors but results in more comprehensive, deployment-ready solutions.
What types of applications are users building?
Approximately 80% of users create serious applications beyond simple landing pages. Popular categories include e-commerce platforms (12%), fintech apps (10%), B2B tools (5-6%), and mental health applications (4-5%).
What is Rocket.new’s pricing structure?
The platform offers a free trial up to one million tokens, followed by monthly subscriptions starting at $25 for five million tokens. This model effectively targets professional users while maintaining healthy margins.
Where is Rocket.new based?
The company is headquartered in Surat, India, but is establishing a US office in Palo Alto to better serve its largest market. The team currently consists of 58 members, primarily based in India.
What are Rocket.new’s growth targets?
The startup aims to reach $20-25 million in annual recurring revenue by year-end and $60-70 million by June 2025, representing significant growth from its current $4.5 million ARR.
