A stealth AI startup has quietly outshined giants like DALL-E and Midjourney. Now, it’s raised $30 million to fuel its next stage of growth.
Recraft, a San Francisco-based company, secured a $30 million Series B round. Accel led the investment, with Khosla Ventures and Madrona also backing the startup. This follows a $12 million Series A led by Khosla in 2024.
The company builds its image models from scratch. One of them—nicknamed “red_panda”—outperformed industry leaders on the respected Artificial Analysis benchmark last year. The name came from users who often generated images of the cute animal. But behind the fun name lies serious tech.
Unlike many other tools, Recraft focuses on branded visuals. Its AI allows companies to generate posters, banners, and brochures with logos placed precisely—no manual edits required. That’s something existing models struggle with, especially when it comes to brand consistency.
Recraft now serves over 4 million users and has crossed $5 million in annual recurring revenue. The company is quickly positioning itself as a go-to solution for businesses that need fast, reliable visual content without compromising brand identity.
Its approach puts it in a unique spot. Recraft doesn’t just compete with AI models like Adobe Firefly or Stable Diffusion. It’s also going after design platforms like Canva, which offer AI-powered tools for marketing teams.
Behind it all is Anna Veronika Dorogush, Recraft’s solo founder and CEO. Before launching the company, she worked in machine learning at Yandex, as well as stints at Google and Microsoft. She also spent time as a professional model while earning a math and computer science degree from a top Russian university.
That experience taught her more than discipline. It showed her that hustle alone isn’t enough. “Grinding doesn’t guarantee success,” she said. “At Recraft, we know what matters most—building the best models. So that’s where we focus all our effort.”
The result? A startup that’s not only beating the best but also reshaping how brands create and manage visual content.
