Blacksmith raises $66 million and reaches a $1 billion valuation — Fortune

Startup Blacksmith, which provides infrastructure for testing software code before deployment, has raised $66 million in a Series C round led by Sequoia Capital. Following the investment, the company’s valuation reached $1 billion, Fortune reports.

About two months earlier, Blacksmith raised $45 million in a Series B round led by Peak XV Partners. At the time, the company was valued at $550 million. The startup’s total funding amounts to about $124.5 million.

Growing testing workload

Blacksmith was founded in 2024. The company offers developers continuous integration tools: automated builds and tests that code must pass before being merged into the main codebase and deployed.

According to Blacksmith, more than 10,000 companies use its platform, compared with about 5,000 in August. Its customers include Granola, Handshake, Supabase, and LangChain. Since the beginning of the year, the number of checks the platform runs weekly has grown from 5 million to 90 million.

More current news is available on the UA.News Telegram channel Telegram.

Co-founder and CEO Aditya Jayaprakash said the company’s annual recurring revenue increased 17-fold over this period and now stands at tens of millions of dollars. According to the company, its largest customers spend more than $1 million a year on its services.

Investment in its own servers

Blacksmith plans to direct most of the new funding toward purchasing additional computing capacity. The company buys its own servers and places them in data centers in different parts of the world, while also developing software to operate them.

According to Jayaprakash, AI-based code-writing tools, including Cursor, OpenAI Codex, and Anthropic Claude Code, have accelerated software code creation but intensified the need to test it. Blacksmith has about 40 employees in San Francisco and New York and plans to expand its staff to about 75 people by the end of the year.