Replit has raised $250 million in fresh capital, pushing its valuation to $3 billion as demand soars for its AI-powered application builder.
Quick Summary – TLDR:
- Replit secured $250 million in a funding round led by Prysm Capital, boosting its valuation from $1.16B to $3B.
- The startup’s annualized revenue grew from $2.8 million to $150 million in under a year.
- Replit launched Agent3, an advanced AI engine that can autonomously build and test applications.
- The funding will be used to expand global operations and accelerate product development.
What Happened?
Replit, the San Francisco-based AI coding platform, has raised $250 million in a new funding round led by Prysm Capital. The investment values the company at $3 billion, nearly tripling its previous valuation from 2023. With this round, Replit has now raised a total of $478 million.
Another BIG NEWS ✨
— Replit ⠕ (@Replit) September 10, 2025
We are excited to share that we closed our $250M Series C at a $3B valuation. The round was led by Prysm Capital with @AmexVentures and @Google AI Futures Fund joining existing investors @ycombinator , @craft_ventures, @a16z , @coatuemgmt, and @paulg, among… https://t.co/MUAm3BxiAr
Massive Funding and a Sharp Valuation Spike
The latest funding round drew support from Amex Ventures, Google’s AI Futures Fund, Y Combinator, Andreessen Horowitz (a16z), Coatue, Craft Ventures, and Paul Graham, reflecting widespread confidence in Replit’s mission to make software creation faster and more accessible.
This latest valuation represents a nearly 4x increase from the company’s prior valuation of $800 million to $1.16 billion in just over a year. Much of that jump is credited to Replit’s explosive revenue growth, with annualized revenue jumping from $2.8 million to $150 million in less than 12 months.
The Power of Agent3
At the heart of this success is Agent3, Replit’s latest AI engine designed to automate entire development workflows. Unlike previous versions that operated for just a few minutes, Agent3 can now work autonomously for up to 200 minutes, significantly improving the complexity and quality of output.
Key capabilities of Agent3 include:
- Rapid prototyping: Generates a basic application structure in about 10 minutes.
- Autonomous development: Refines and builds full apps based on user feedback.
- Built-in debugging: Tests apps in-browser by simulating real user interactions and automatically fixes bugs.
- Custom tool creation: Enables users to build tools like chatbots that pull real-time data from external databases.
Replit’s Expanding Ecosystem
With over 40 million global users, Replit is quickly becoming a central hub for developers seeking cloud-based, AI-enhanced development environments. The platform now competes directly with services like GitHub Codespaces and AWS Cloud9.
Replit is also making big strides in cloud integration. While it already had a close relationship with Google Cloud, Microsoft began offering Replit on Azure starting in July, broadening its reach across major cloud platforms.
The company’s tools are now also available through the Google Cloud Marketplace, further strengthening its footprint in enterprise environments.
What the Funds Will Be Used For
Replit plans to use this $250 million in new funding to:
- Expand global operations
- Accelerate AI product development
- Support international growth
- Deepen partnerships with cloud platforms and enterprise users
SQ Magazine Takeaway
Honestly, I’m blown away by what Replit has pulled off here. A 50x revenue surge in under a year is rare, even in the fast-moving world of AI. This is no longer just a scrappy dev tool. With Agent3, Replit is proving that AI can handle entire coding workflows, not just suggest snippets. That’s a big deal. Investors see it too, judging by this massive funding and valuation hike. If Replit keeps scaling like this, it might just redefine how we build software entirely.
