AppLabs raises $7 million for an acquisition

By siliconindia staff writer   |   Friday, 01 October 2004, 19:30 IST
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MUMBAI: WestBridge Capital Partners has announced an investment of $7 million in Series A equity financing in AppLabs Technologies Pvt Ltd. AppLabs is one of the world’s leading independent software testing and custom application development companies. WestBridge will play a key role, assisting AppLabs in accelerating its growth through the acquisition route, giving the firm a strategic competitive edge. As part of the investment, Sumir Chadha, Senior Managing Director, WestBridge Capital Partners, will assume the role of Chairman at Applabs. Guhan Swaminathan, Principal, WestBridge Capital Partners will join the board of AppLabs. AppLabs is headquartered in Philadelphia and has an offshore technology center in Hyderabad, India which is equipped with an extensive inventory of hardware and software to enable the testing of the most complex and challenging applications. AppLabs technical services include almost every type of testing including, functional, compatibility, performance, wireless, useability, and code reviews. AppLabs offers unparalleled expertise in providing QA services with extensive experience in developing test plans, ad hoc testing, automated testing using various tools like WinRunner, SilkTest, and performance testing using tools like WebLoad and LoadRunner. AppLabs is an ISO 9001: 2000 certified and also a CMM Level 5 company. AppLabs is also a Microsoft Gold Certified Partner. “This investment will provide us the financial strength to go out and acquire the talent and revenue we need to build the market leader in the software testing space. WestBridge Capital Partners is a highly regarded institutional investor in the US-India market, and an active, value-added investor in the technology space; we are very excited in leveraging their strengths to build a truly global software testing business,” said Sashi Reddi, Founder and CEO AppLabs. AppLabs has tested or developed products that today are used by almost every Fortune 500 and Global 2000 company worldwide. “With strong success with customers, an impressive array of comprehensive products and solutions and sound leadership, AppLabs is poised to be a leading, successful global player in the software testing arena”, said Sumir Chadha, Senior Managing Director of WestBridge Capital Partners. “We are excited to partner with an exceptional entrepreneur like Sashi Reddi to address the large market opportunity that software testing offers,” he added. The size of software testing industry in the US is approximately $3 billion. Software testing is fast growing into an important piece of the IT services spectrum that is being outsourced to India. The fast paced software industry has increased the market for outsourced quality analysis and product development. The enormous pressure on testing teams, with tight cycles to meet customer demand and quality control, along with the cost saving for start-ups provides an opportunity for AppLabs to competitively price its services, while providing a higher return to its clients.