Replit announced a strategic partnership with Microsoft, a move expected to benefit both companies from a business standpoint.
As part of the agreement, Replit will now be available through Microsoft’s enterprise cloud app store, the Azure Marketplace. This means Microsoft customers can purchase Replit subscriptions directly from the platform. Additionally, Replit’s technology will integrate with several Microsoft cloud services, including containers, virtual machines, and Microsoft’s version of the Postgres database — Neon Serverless Postgres — which Replit supports. This integration will allow Azure to generate revenue from Replit applications deployed in production.
Although Microsoft already offers GitHub Copilot — a widely used AI coding assistant — Replit does not directly compete with it. The two tools are targeted at different user bases and use cases. While Copilot is geared toward professional developers writing code, Replit caters to both experienced programmers and users with little to no coding background. Users can create web apps using natural language prompts, with Replit handling everything from databases and authentication to storage. Those with programming experience can further customize the applications, as Replit supports multiple programming languages.
Under this partnership, the two companies are positioning the platform as a prototyping and design tool — potentially a competitor to Figma. The offering is also aimed at non-technical business managers looking to build their own applications. For example, a sales manager could create an app that tracks correlations between contract renewals and customer support tickets.
A Replit spokesperson told TechCrunch: “We’re enabling employees across all departments to build applications regardless of their coding experience. In that sense, we complement Copilot rather than compete with it.”
Replit is considered one of the rising stars of the “vibe coding” movement. In June, CEO Amjad Masad announced that the company had grown its annual recurring revenue (ARR) from $10 million to $100 million in just six months.
To date, Replit has raised $97.4 million in funding, led by Andreessen Horowitz with participation from investors including Khosla Ventures, Coatue, SV Angel, Y Combinator, Bloomberg Beta, Naval Ravikant, and ARK Ventures — resulting in a $1.1 billion post-money valuation. Masad noted that “more than half of that funding is still in the bank.” The company reports over 500,000 active business users on its platform.
Replit competes with other fast-growing startups, such as the Europe-based company Lovable, which reached $50 million ARR in the same time frame and is reportedly preparing for a new funding round at a $2 billion valuation. Another competitor, Bolt, grew to $40 million ARR in just five months.
If any player stands to lose from this partnership, it’s Google Cloud. Applications built with Replit have historically been hosted on Google Cloud, and Google has even featured Replit as a success story on its platform.
However, Replit confirmed to TechCrunch that the deal with Microsoft is non-exclusive. The company is not leaving Google Cloud but expanding to support Microsoft customers as well. This opens the door for other "vibe coder" platforms to form similar partnerships with Microsoft.
