diff --git a/VERSION b/VERSION
index 643260e8..fe1b283c 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-v0.3.39
\ No newline at end of file
+v0.3.40
\ No newline at end of file
diff --git a/chart/Chart.yaml b/chart/Chart.yaml
index a0de524e..37ae2bea 100644
--- a/chart/Chart.yaml
+++ b/chart/Chart.yaml
@@ -2,5 +2,5 @@ apiVersion: v2
 description: A Helm chart for kraan controller
 name: kraan-controller
 type: application
-appVersion: v0.3.39
-version: v0.3.39
+appVersion: v0.3.40
+version: v0.3.40