San Francisco-based AI startup Recraft has raised a $30 million Series B round, following the breakout success of its stealth image generation model that beat both OpenAI’s DALL·E and Midjourney on a respected industry benchmark.
The funding round was led by Accel, with participation from Khosla Ventures, Madrona, and others.
The company, which previously raised $12 million in a Series A led by Khosla in 2024, now boasts over 4 million users and $5 million in annual recurring revenue (ARR).
Meet “red_panda”: the model that stole the spotlight
The company made headlines when its AI model — codenamed “red_panda” — topped the Artificial Analysis benchmark, outperforming leading platforms in visual quality and brand usability. The name came from an early quirk: users frequently generated images of red pandas with the model’s third version.
Unlike broader creative platforms, Recraft is focused on brand-specific image generation. It enables users to accurately place logos, maintain branding consistency, and generate marketing materials like posters and brochures with minimal editing — an area where existing image models often struggle.
This focus positions Recraft closer to tools like Canva, while still competing with general-purpose AI generators like Adobe Firefly, Stable Diffusion, and Black Forest Labs.
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A solo female founder with deep AI roots
Recraft was founded by Anna Veronika Dorogush, a seasoned machine learning engineer with previous roles at Yandex, Google, and Microsoft. Before transitioning to tech, Dorogush worked as a professional fashion model while studying mathematics and computer science at a top Russian university.
She says that experience shaped her approach to entrepreneurship: “The biggest lesson from that time was that grinding isn’t everything. When building Recraft, we focus on what’s truly mission-critical — and that’s the models.”
What’s next for Recraft?
The new capital will help scale Recraft’s engineering team, deepen its product for brand-focused users, and expand its reach in the competitive image generation space. The company’s model-first approach, paired with enterprise usability, makes it one of the most promising challengers in the visual AI race.
With a growing user base, strong financials, and proven benchmarks, Recraft is quickly evolving from stealth mode into one of the most closely watched image generation startups in the industry.
