LambdaTest, a cloud-based testing platform founded in 2017, has secured $38 million in a funding round led by Avataar Ventures, with Qualcomm Ventures also participating. This round marks the company’s first major funding in over 30 months, bringing its total funding to $108 million. LambdaTest’s earlier rounds included a $45 million raise in March 2022, supported by prominent investors such as Premji Invest, Peak XV, Telstra Ventures, Blume Ventures, and Leo Capital. The company was also a part of the fourth cohort of Peak XV’s accelerator program, Surge.
The latest infusion of capital will be used to enhance LambdaTest’s AI-driven quality assurance (QA) solutions, particularly focusing on its newly launched “AI Native QA Agent-as-a-Service” platform, KaneAI. The platform is designed to reduce manual testing efforts by up to 70% by automating test script generation and offering actionable insights. LambdaTest’s HyperExecute platform further accelerates test resolution by 2.5x and detects errors 60% faster than traditional cloud grids.
LambdaTest, based in Noida and San Francisco, aims to revolutionize the QA landscape with a combination of AI and automation, serving over 15,000 customers globally. The company has executed more than 1.2 billion tests to date and boasts a customer base that includes over 2.3 million developers and testers.
The company has experienced impressive growth, with a 105% year-over-year increase in its global customer base. In India, its operating revenue surged by 53.6% to Rs 175.44 crore in FY24, up from Rs 114.22 crore the previous fiscal year. LambdaTest also reported a profit of around Rs 18 crore.
Despite its success, LambdaTest faces stiff competition from other players in the market, such as BrowserStack, Perfecto, and Testsigma. However, with its robust AI-powered solutions and continued expansion, the company is well-positioned to continue leading the cloud-based testing space.
