Spanish startup Magnific pivots from stock images to AI video generation, reaching $230 million in annual recurring revenue without venture funding

Magnific (formerly Freepik) generates $230 million in annual recurring revenue, with video accounting for roughly half of the revenue. The company has been bootstrapped throughout its history and is profitable, according to founder and CEO Joaquín Cuenca Abela.

The platform lets users select from various video AI models—including Google's Veo 3.1 and ByteDance's Seeddance 2.0—and combines them with Magnific's own pre-production tools that let users create consistent character assets, props, and scenery before generating the final AI video.

Magnific's video tools have been used in ad campaigns for Puma and Carl's Jr, in the Amazon Prime Video series House of David, and by the BBC. The company currently has 400 employees, down from roughly 550 when focused on stock images.