The round saw participation from existing investors Sequoia India, Telstra Ventures, Blume Ventures, and Leo Capital
The startup plans to use the funding to step up product development and streamline its platform
LambdaTest claims to have been used by more than 1 Mn developers and testers globally, having run more than 100 Mn tests since its launch
Cloud-based browser testing startup, LambdaTest, has raised $45 Mn in a strategic investment round led by Premji Invest.
The round also saw participation from existing investors Sequoia India, Telstra Ventures, Blume Ventures, and Leo Capital. Angel investors including SaaS firm Tricentis’ ex-CEO Sandeep Johri, also invested in the round.
The startup plans to use the funding to step up product development and streamline its platform. The investment will also be used for accelerating growth and ramping up hiring multiple roles and geographies.
Speaking on the announcement, LambdaTest CEO and cofounder, Asad Khan, said, “This funding round will enable us to keep innovating and accelerating growth. We are on a mission to build the best test execution platform for the developers and testers community.”
Echoing the sentiment, Premji Invest partner, Atul Gupta, said, “LambdaTest is helping businesses orchestrate their test execution by providing them cost-effective and scalable solutions while giving them improved control over their existing infrastructure without the need to add more to it. They are pushing the boundaries of speed, reliability and performance of test execution. We are happy to partner with this super ambitious LambdaTest team that is looking to change the face of test execution.”
Founded in 2017 by Asad Khan and Jay Singh, LambdaTest is a testing infrastructure startup that allows developers to seamlessly test their websites and apps on any browser or operating system environment.
In June last year, the startup raised $16 Mn in Series B funding round led by Sequoia India. Prior to that in December of 2020, it had also raised $6 Mn in a funding round led by Sequoia India’s accelerator programme – Surge, Blume Ventures, Entrée Capital. In total, LambdaTest claims to have raised $25 Mn in the course of five funding rounds.
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The idea took hold in the minds of Singh and Khan after noticing the pressure faced by developers to test and debug their code faster. To remedy that, the duo developed a platform that allows users to run both manual and automated tests of web and mobile apps across more than 3000 different browsers and operating system environments.
The Growth Story
Since its inception, the startup has grown exponentially. LambdaTest claims that its platform is used by more than 1 Mn developers and testers globally and it has run more than 100 Mn tests since its launch. Add to that, the startup also says that its business soared by more than 300% last year.
Meanwhile, the startup has been ramping up its product offerings. LambdaTest CEO, Asad Khan said the startup released ‘next-generation’ smart-test orchestration platform, HyperExecute, a few months back. LambdaTest also plans to soon unveil its test intelligence platform, Test-at-Scale. The product is currently in beta phase.
Back home, LambdaTest competes with players like Testmatik, Fleek IT Solutions, BrowserStack, VTest, among others. Globally, it locks horns with companies such as Optimizely, Sauce Labs, Kobiton, TestComplete and TestingBot.
According to a report, the cloud applications market is expected to grow from $171 Bn in 2020 to $356 Bn by 2025, at a CAGR of 15.8%.
In addition, the global mobile application testing services market generated a revenue of $3.1 Bn in 2018 and is expected to reach a market value of $13.58 Bn by 2026, growing at a CAGR of 20.3%.
This follows a strong performance by Indian cloud-based startups this year. Building on a strong 2021, the startups, this year, continue to excel and grow exceptionally.
Weeks ago, IT giant Tech Mahindra announced the acquisition of Mumbai-based enterprise application firm, Thirdware, for $42 Mn in an all-cash deal.
Thai follows IPO-bound SaaS platform Netcore Cloud acquiring a majority stake in the US-based search personalisation company Unbxd Inc for about $100 Mn. Days ago, B2B SaaS startup Draup also raised $20 Mn from US-based PE firm HKW.
Earlier last year, software testing platform Browserstack had also acquired open-source test automation framework Nightwatch.js for an undisclosed amount.