Software-as-a-service unicorn BrowserStack, last valued at about $4 billion in 2021, has acquired Berlin-based advanced bug reporting tool Bird Eats Bug, it said in a statement on Tuesday.
As part of the deal, BrowserStack will incorporate European venture capital firm Nauta Capital-backed Bird Eats Bug’s capabilities in its ecosystem and launch a manual testing solution Bug Capture.
The companies didn’t disclose the deal value but a spokesperson for BrowserStack said in response to VCCircle queries that it has committed a total of $20 million to the deal. This investment includes upfront cash, stock, and future investment for product development.
The spokesperson said that BrowserStack is scaling through internal accruals, avoiding the need for significant equity dilution or primary capital raising. The company has $250 million cash on the balance sheet to support organic and inorganic investments and a business that generates more than $100 million of free cash flow each year, the spokesperson added.
The deal will help the software testing startup to increase its offering to 15 products, which will also include Bug Capture for bug-reporting and eliminating fragmented toolchains in testing.
“This acquisition marks a significant step towards our goal of providing developer and quality assurance teams with a unified, seamless testing experience,” said Ritesh Arora, chief executive and co-founder of BrowserStack.
“By integrating Bug Capture’s innovative approach to bug reporting into our platform, we’re not just streamlining workflows; we’re boosting development teams’ productivity so they can focus more on building great products and less on managing the intricacies of the testing process,” he added.
Bug Capture allows faster debugging of programs with features such as instant replays, screen recording, and comprehensive auto-captured technical logs, such as console and network logs, system details, and steps to reproduce.
Founded in Mumbai in 2011 by serial entrepreneurs Ritesh Arora and Nakul Aggarwal, BrowserStack offers developers instant access to a cloud platform that allows them to test their websites and mobile applications, replacing the need for teams to own and manage an in-house test infrastructure.
It last raised $200 million in a Series B funding round led by former Kleiner Perkins partner Mary Meeker’s investment firm BOND. Venture capital firm Accel and Insight Partners also took part in the round. Previously, the company secured $50 million in a Series A round in January 2018 to expand its team and build a brand presence.
*This article has been updated to add comments from BrowserStack.
