AI-powered code testing platform Blacksmith has raised $45 million in a Series B funding round at a valuation of $550 million. The round was led by Peak XV Partners, with existing investors Google Ventures (GV) and Y Combinator also participating.
The latest investment takes Blacksmith’s total funding to $58.5 million. The company said it plans to use the fresh capital to expand beyond its current offerings and build a broader suite of coding tools designed to help developers write, validate, and merge software more efficiently.
From CI Workflows to a Wider Developer Platform
Founded in 2024 by Aditya Jayaprakash, Aayush Shah, and Aditya Maru, Blacksmith initially focused on continuous integration (CI), a key part of the software development process that allows companies to build and test code before it is moved into production.
The company provides a cloud platform for running GitHub Actions CI workflows. Blacksmith claims its platform can run these workflows up to twice as fast while costing about half as much.
The startup has expanded its customer base significantly in a relatively short period. It now serves more than 5,000 customers, compared with more than 700 customers less than a year ago. Its customer list includes companies such as Mercury, Supabase, Clerk, Ashby, and Expensify.
AI Enters Blacksmith’s Coding Strategy
While CI workloads remain an important part of Blacksmith’s platform, the company has also moved into AI-powered coding tools.
One of its newer products is Codesmith, an AI coding agent designed to automatically fix failed code checks. The product is aimed at reducing the manual work involved in identifying and resolving problems that emerge during software development and testing.
The expansion comes as developers increasingly use AI tools to generate and modify code. As AI-assisted software development grows, testing and validation have become important parts of the development workflow, particularly for ensuring that generated or modified code works as expected before deployment.
Competition Spans Major Developer Platforms
Blacksmith operates in a competitive market that includes established developer platforms as well as newer AI-focused coding products.
The company competes with GitHub Actions and Cursor Automations, while also facing coding and validation capabilities available through Codex and Claude Code. Major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud, are also developing AI-powered tools and services for software testing and code validation.
This puts Blacksmith in a market where traditional CI infrastructure is increasingly overlapping with AI-assisted development, testing, debugging, and code validation.
India’s AI Testing Market Gains Momentum
The growing use of AI in software development is also contributing to increased activity in India’s AI-powered software testing segment. Companies are developing tools that aim to automate quality assurance and make the process of testing software faster and more efficient.
LambdaTest, now known as TestMu AI, is among the established Indian players in this space. The company raised $38 million in a Series D funding round in 2024 to strengthen its AI capabilities and expand its testing platform.
Newer companies are also entering the market with specialised approaches. BotGauge AI is developing autonomous quality assurance agents, while FinalRun is working on AI agents for mobile test automation across Android and iOS using natural-language instructions.
AI Coding Boom Creates New Demand
The wider growth of AI-powered software development is creating opportunities for companies working on testing and debugging alongside application development.
Bengaluru-based Emergent raised $130 million in July 2026 at a valuation of $1.5 billion. Its platform combines AI-led application development with testing and debugging capabilities.
Blacksmith’s latest funding round reflects the growing focus on tools that can support developers across more stages of the software development cycle. With its expansion into AI-powered coding alongside its existing CI platform, the company is positioning itself to serve developers looking for faster ways to build, test, validate, and improve software.
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