Peak XV-backed tech startup LambdaTest has raised $38 million in a round led by Avataar Ventures, along with participation from Qualcomm Ventures. The current funding takes the total amount raised by LambdaTest to $108 million, the company said on Tuesday.
This latest funding round comes more than two years after it raised $45 million in a venture round led by PremjiInvest and some existing investors such as Peak XV Partners (erstwhile Sequioa Capital India), Titanium Ventures (fka Telstra Ventures), Blume Ventures and Leo Capital.
The capital raised will be used to advance KaneAI, scalable test cloud, and advance automation capabilities of its HyperExecute platform, the company said in a statement. KaneAI is the company's AI-driven QA automation agent-as-a-service platform and HyperExecute is an AI native test execution and orchestration cloud platform.
Avendus was the financial adviser to LambdaTest on this transaction.
AI native is a term to describe products that are built from the ground up with artificial intelligence at the core of the company's offerings.
“KaneAI is more than a tool — it’s a transformative approach to QA, empowering teams to test smarter and faster, with less manual effort,” said Asad Khan, CEO and co-founder of LambdaTest.
“Our foundation in LambdaTest’s cloud-based platform gives us an edge in delivering this solution at scale.”
The startup claims to have over 15,000 clients which include Fortune 500 companies. It said more than 2.3 million developers and testers worldwide use is platforms to test software and have to date executed more than 1.2 billion tests.
The company was founded by Maneesh Sharma, Jay Singh, Asad Khan, and Mayank Bhola in 2017.
"In a short period of time, Asad and team have disrupted the entire market. In a world where every industry & company is going through digital transformation, LambdaTest now becomes a must-have solution," said Nishant Rao, founding Partner at Avataar.