LambdaTest secures USD $38m in funding for AI-Driven QA

LambdaTest has announced a funding round of USD $38 million led by Avataar Ventures, with participation from Qualcomm Ventures, raising the company's total funding to USD $108 million.

The company, known for its cloud-based unified testing platform, aims to use the funds to enhance its AI-driven Quality Assurance (QA) solutions. LambdaTest's platform is utilised by over 15,000 customers, including several Fortune 500 companies, to test websites, apps, and web apps across various devices and browsers.

At the forefront of LambdaTest's innovations is KaneAI, an AI-driven QA automation Agent-as-a-Service, alongside the AI native HyperExecute platform.

These tools are designed to offer companies enhanced testing speed, precision, and scalability for their digital assets. HyperExecute is reported to enable testing up to 70% faster than any cloud grid by conducting intelligent tests across multiple environments, achieving 2.5 times faster test resolution and a 60% quicker error detection rate.

KaneAI is said to cut down manual test script generation by 40-70%, addressing the industry's need for more efficient and streamlined QA processes as software development cycles become more comprehensive and rigorous. LambdaTest's offerings appear to resonate with the industry, with the company experiencing a year-over-year growth of about 105%, and supporting over 2.3 million developers and testers globally, who have conducted more than 1.2 billion tests using the platform.

Asad Khan, CEO and Co-Founder of LambdaTest, highlighted the transformative potential of KaneAI, stating: "KaneAI is more than a tool—it's a transformative approach to QA, empowering teams to test smarter and faster, with less manual effort. Our foundation in LambdaTest's cloud-based platform gives us an edge in delivering this solution at scale, and we're thrilled to have the support of Avataar Ventures and Qualcomm Ventures as we reshape the future of QA."

Nishant Rao, Founding Partner at Avataar Ventures, praised the LambdaTest team, saying: "Asad & team are a force of nature to be reckoned with — in a short period of time they have disrupted the entire market. From creating the first AI-native, no-code QA solution (KaneAI) to launching the only truly e2e Enterprise grade, secure test orchestration platform (HyperExecute), they have totally changed the game & pulled the rug out from under existing CBT vendors."

"In a world where literally every industry & company is going through digital transformation, LambdaTest now becomes a must-have solution that delivers the best customer experience & accelerated time to market while also meaningfully cutting costs. We've been inspired to see the high quality of their growth & are super bullish for the future. Avataar's unique #OperatingVC model will help ensure they have active support at every stage of the journey to translate their first mover advantage into becoming the global market leader (but this time Built in India for the World)!"

Quinn Li, Senior Vice President of Qualcomm Technologies, Inc. and Global Head of Qualcomm Ventures, added: "As AI applications on the cloud and on devices become more prevalent, continuous testing with AI-driven automation is essential for accelerating release cycles and improving CI/CD pipeline efficiency."

"LambdaTest's comprehensive product suite is transforming software quality assurance with AI-driven autonomous testing systems. We are excited to support their journey."

This investment underscores the growing importance and potential of AI-driven tools in the QA market. As businesses increasingly seek cloud solutions to streamline their testing processes, LambdaTest positions itself as a leader in QA innovation, continuing to expand its influence in the market.

Since its founding in 2017, LambdaTest has raised nearly USD $70 million from previous investors, including Premji Invest, Sequoia Capital India, Titanium Ventures, Leo Capital Holdings, and Blume Ventures.