A stealth AI model outperformed DALL-E and Midjourney on a popular benchmark, and its creator just secured $30 million

Recraft secures $30M after its AI outpaces DALL-E, boosting to 4M users.

: Recraft, a San Francisco startup, has secured $30 million in a Series B funding round led by Accel, supported by Khosla Ventures and Madrona. The company's image-generation model, 'red_panda', outperformed DALL-E and Midjourney on the Artificial Analysis benchmark. Recraft's technology allows precise brand logo placement and marketing material generation, rivaling design tools like Canva. Founder Anna Veronika Dorogush emphasizes excellence in model building, stemming from her experiences in the tech industry and professional modeling.

A stealth AI image generation model, developed by a startup named Recraft, has surpassed major players like OpenAI’s DALL-E and Midjourney in the Artificial Analysis benchmark. This performance milestone caught the industry's attention as Recraft remained under the radar until recently. The company just announced it secured $30 million in Series B funding led by Accel, with participation from Khosla Ventures and Madrona. This adds to its previous $12 million Series A round, bringing its total funding to $42 million.

The model, internally codenamed red_panda, is currently in its third version (V3) and focuses on generating brand-ready visuals. Unlike general-purpose models, red_panda is tailored to produce marketing and branding materials, including assets like logos and ad creatives. Its edge lies in precision — it can place branding elements exactly where needed and maintain stylistic consistency, a key differentiator for business applications.

Recraft has already built up a strong foundation with over 4 million users and $5 million in annual recurring revenue. While other tools like Adobe Firefly and Stable Diffusion dominate general use cases, Recraft's commitment to custom model development has enabled it to thrive in the niche of brand-specific image generation. This bespoke approach gives it a unique foothold in the AI visual space.

The growing success of Recraft signals a broader shift in generative AI — from generalist tools to specialized, enterprise-focused models. Companies are increasingly seeking tools that can meet specific creative needs without requiring post-processing or extensive human intervention. Recraft’s benchmark performance and product-market fit suggest that it could help define the next wave of applied AI in visual content creation.

With fresh funding, Recraft plans to enhance its model further and scale its reach. Its vision aligns with the increasing demand for fast, scalable, and brand-consistent image creation, offering a compelling alternative to mainstream models for commercial purposes.

Sources: TechCrunch, Bens Bites, Techmeme

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