LambdaTest, a leading AI-Native cloud-based unified testing platform, has raised USD 38 million in financing led by Avataar Venture Partners, a growth-equity investment firm focused on investments in high growth technology and technology-enabled B2B companies. Qualcomm Ventures, the global corporate venture arm of Qualcomm, also participated. This investment will propel LambdaTest’s mission to democratize quality engineering through innovation, setting new industry benchmarks for web and mobile software quality with its cutting-edge platform, KaneAI – an AI Native QA Agent-as-a-service platform.
Avendus Capital acted as the exclusive financial advisor to LambdaTest on this transaction.
Serving over 15,000 customers, including Fortune 500 and G2000 companies, LambdaTest has solidified its position as a leader in the QA domain. Among its latest innovations are KaneAI, an AI-Native QA automation Agent-as-a-Service, and the HyperExecute platform, empowering businesses to test their digital assets with unmatched speed, accuracy, and scalability.
HyperExecute, LambdaTest's AI-Native cloud, boosts test execution by 70%, with 2.5x faster resolutions and 60% quicker error detection. KaneAI enhances efficiency, cutting test script generation by 40-70%. Together, these GenAI solutions streamline QA for the speed and complexity of modern software development. LambdaTest supports 2.3 million developers and testers globally, enabling intelligent testing, faster releases, and high-quality software delivery, with over 1.2 billion tests executed to date.
The investment by Avataar Ventures and Qualcomm Ventures highlights the transformative potential of AI-Native platforms in the QA industry. As businesses increasingly embrace cloud-based solutions to optimize their testing workflows, LambdaTest’s holistic approach solidifies its position as a leader in QA innovation, underscoring its dominance in a vast and ever-evolving market.
Asad Khan, CEO & Co-Founder at LambdaTest said, “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. We also thank Avendus for their continued support and commitment throughout the process.”
Nishant Rao, Founding Partner at Avataar said, “Asad and 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 and pulled the rug out from under existing CBT vendors. In a world where literally every industry and company is going through digital transformation, LambdaTest now becomes a must-have solution that delivers the best customer experience and accelerated time to market while also meaningfully cutting costs. We've been inspired to see the high quality of their growth and 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, Qualcomm Technologies, Inc. and Global Head of Qualcomm Ventures said, “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.”
Karan Sharma, Managing Director & Co-Head, Digital and Technology Investment Banking at Avendus Capital said, “We are proud to collaborate with LambdaTest, a pioneer in redefining the traditional testing landscape. LambdaTest’s unparalleled strength lies in its R&D-driven, AI-Native products, delivering enterprise-grade test execution capabilities with exceptional speed and intelligence-assisted observability and analytics. These innovations empower companies to accelerate their go-to-market strategies with unmatched efficiency and precision. This partnership underscores our confidence in the immense potential of the AI ecosystem in India.”
About Avendus
Avendus Group is a leading financial services firm with a presence in the areas of Investment Banking, Institutional Equities, Wealth Management, Credit Solutions and Asset Management. Established in 1999 in Mumbai, India, Avendus is today present in 10 cities across India, US and Singapore. Avendus partners with the Indian entrepreneur ecosystem to provide differentiated solutions that enable clients to meet their strategic aspirations.
Avendus Capital, the investment banking arm, is consistently ranked among the top investment banks in the country on the back of its in-depth domain understanding and a best in the class track record of domestic and cross-border transactions. Avendus’ wide range of clients is testimony to its ability to serve its corporates throughout their life cycle – from growth stage funding to large-sized transactions, M&A advisory and access to public markets.
Avendus Capital Inc., New York and Avendus Pte Ltd., Singapore are both Avendus Group entities offering services to clients in the US and Southeast Asia respectively.
For more information, please visit www.avendus.com
