Surat-based AI startup Rocket is reportedly approaching a funding round of between $40 million and $50 million at a valuation of approximately $500 million, with 360 ONE Asset expected to lead the financing and potentially invest up to $25 million. The proposed transaction would represent a major increase from the company’s previously reported valuation of about $60 million and position Rocket among the more highly valued emerging AI software companies in India outside the country’s traditional technology centers. Neither Rocket nor 360 ONE Asset had publicly announced a completed transaction at the time of reporting.
Funding Round Details
The planned capital raise is expected to bring additional investors into Rocket’s shareholder base alongside 360 ONE Asset. The reported valuation suggests investors are assigning significant value to the company’s user growth, revenue performance, and expansion potential in AI-powered application development. A final deal could still change in size, valuation, investor participation, or timing before closing.
Rocket’s potential raise comes as investors increasingly seek companies that can turn advances in generative AI into software products with recurring commercial demand. AI-native development platforms have gained traction by allowing users to build, test, and launch digital products with less reliance on traditional coding workflows. This market remains highly competitive, with startups and established software companies racing to add automated development capabilities.
From Developer Tool to AI App Builder
Founded in 2021, Rocket initially operated as a developer automation platform before evolving into an AI-native app builder. The company’s current platform is designed to help users create applications through AI-assisted workflows, reducing the time and technical effort required to move from an idea to a usable product. This strategic shift places Rocket in a growing category of companies focused on democratizing software development.
The company has reportedly surpassed 400,000 users across 180 countries, giving it an international user base despite its origins in Surat. Rocket is also said to generate approximately $4.5 million in annual revenue, indicating that its platform has begun converting user adoption into commercial activity. These metrics likely form a central part of the investment case behind the proposed funding round.
Planned Use of Capital
If completed, the funding would provide Rocket with resources to expand its AI capabilities and develop additional products for its platform. The company is also expected to use the capital to support global user acquisition and broaden its reach in markets where demand for low-code and AI-enabled software tools is growing. Product investment could be particularly important as users increasingly expect app-building platforms to offer more sophisticated design, automation, deployment, and integration features.
The capital could also help Rocket strengthen its position as larger technology companies introduce competing AI development tools. Sustaining growth will require more than user acquisition, as the company will need to demonstrate that customers can build reliable applications and remain active on its platform over time. Revenue growth, retention, and enterprise adoption will therefore be key indicators for investors following the company’s next stage.
Rocket’s reported funding discussions underline the growing investor appetite for AI companies that combine broad user adoption with tangible revenue. A successful $40 million to $50 million round at a $500 million valuation would mark a substantial milestone for the Surat startup and reinforce the emergence of AI-focused companies beyond India’s main startup hubs. The outcome will depend on whether the company can convert its early momentum into durable global growth in an increasingly crowded AI application development market.