LambdaTest, a cloud-based browser compatibility and automation testing platform, on Friday said it has raised Pre-Series A funding of $2 million, led by early stage technology-focused venture capital (VC) firm Blume Ventures.
“At Blume ventures, we were actively looking to partner with a Deep tech SaaS (software-as-a-service) platform as the industry is witnessing rapid growth. LambdaTest in just two years has done an amazing job in the cross browser testing and automation testing space and we believe in coming years it is poised be a significant new challenger in this exciting and ever-changing market of cloud testing," said Sanjay Nath, co-founder and managing partner at Blume Ventures.
The round also saw active participation from its existing investor Leo Capital. In December last year, the company raised $1 million seed capital from Mumbai-based VC fund Leo Capital.
“LambdaTest has been able to create a distinct name in the cloud based testing space because of its breakthrough technology, best in the industry performance, fast customer support, and amazing features," said Asad Khan, co-founder and chief executive officer of LambdaTest.
“We offered a complete package to our customers and this round of funding showcases the confidence that the industry and the investors have in us. With our continuous and agile approach to offer new features, we believe that LambdaTest has the potential to outperform other platforms," he added.
Co-founded by Khan and Jay Singh in 2017, the firm was started with the aim of developing an integrated cloud based test execution ecosystem to eliminate the effort of testers and developers in building, maintaining and scaling in-house test infrastructure. Now it provides its users with instant access to over 2,000 different mobile and desktop browser and OS combinations.
Having grown to a user base of over 1.1 lakh active users in more than 130 countries, the San Francisco-based company plans to use the funds to hire new talent and enhance its existing platform by investing in technology and research to introduce exciting features, scale infrastructure and increase the performance of its platform.
The company offers a trial before buy version of its automation feature where all users can play with the tool for 200 minutes. Further, it provides unlimited access to run automation tests at $79 per month on a subscription basis.
Its clients include enterprises such as Newsela, Scholastic, Capgemini, Eureka, Deloitte, Brother.com, which use LambdaTest’s platform to run thousands of manual and automation tests online.
Venture investors, having taken a beating on high-risk consumer internet firms, are increasing their bets on business-to-business (B2B) startups. Within the B2B space, a big chunk of investments have flown into software-as-a-service (SaaS) startups. According to venture capital data firm Tracxn, 2018 saw investments of $3.09 billion in B2B startups across 415 rounds, 28% more than the $2.41 billion allocated in 2017, across 534 rounds.