Qodo secures $40M Series A to boost AI-driven software development

Driving the news: Qodo, formerly CodiumAI, has raised $40 million in a Series A to integrate advanced algorithms into various aspects of software development, focusing on code integrity and quality.

Impressing the market: The fundraise brings Qodo's total investment to $50 million, and comes as the software development landscape undergoes a significant transformation with the adoption of AI-powered coding solutions. Qodo was named by Gartner as a "Cool Vendor" in AI-Augmented Development and Testing for Software Engineering, and accepted into AWS's Generative AI Accelerator program.

The big picture: Qodo aims to help developers build high-quality software with confidence. Initially focused on AI-assisted unit test generation, the company has evolved into a comprehensive intelligent coding platform used by over 1 million developers, including several Fortune 100 companies.

• Qodo's enterprise sales crossed $1 million in Annual Recurring Revenue (ARR) within three months of launching its offering in March.

What they're saying: "Our focus remains on code integrity as we continue to expand our platform's suite of AI-powered tools," said Itamar Friedman, Qodo CEO and co-founder. "We are developing new capabilities and supporting developers with innovative solutions that ensure robust and reliable code throughout the entire development lifecycle."

• The round was led by Susa Ventures and Square Peg, with participation from Firestreak Ventures, ICON Continuity Fund, TLV Partners, and Vine Ventures.

Zoom in: The rise of AI-generated code raises concerns about quality and reliability, but Qodo addresses these issues head-on.

• The company's platform integrates seamlessly with popular IDEs, git platforms, and CLIs.
• Advanced techniques like Retrieval Augmented Generation (RAG) and a dynamic best practices database tailored to organizational coding standards enhance code quality and reliability.

What's next: Qodo plans to expand its offerings, including Qodo Cover for complex codebases, Qodo Merge for better code reviews, and evolving Qodo Gen into a multi-agent system. The company will also extend its service to test code from the user interface with a new service called Qodo UX.