Software testing platform LambdaTest secures $38M for AI push

LambdaTest, a cloud-based software testing platform, has raised $38 million in a Series D funding round as it looks to expand its presence in existing markets and improve its AI capabilities.

The Series D was led by Avataar Ventures, and saw participation from Qualcomm Ventures. It brings LambdaTest’s total funding raised to $108 million.

LambdaTest provides infrastructure that lets companies test their applications across more than 5,000 browser and operating system combinations. Instead of setting up and maintaining expensive testing suites, companies can use LambdaTest’s cloud platform to see if their software runs as intended across different environments. LambdaTest also maintains labs with thousands of devices for testing.

The investment comes as software testing faces mounting pressure from the rise of AI-generated code. According to LambdaTest’s survey of over 1,600 enterprise teams, only 23% of testing bandwidth is spent on test authoring and planning, and significant time is consumed by maintenance and operational tasks like fixing broken tests, triaging and debugging, and setting up test environments.

The startup recently launched the KaneAI platform, which it describes as an “AI Native QA Agent-as-a-Service,” aiming to automate many such tedious testing tasks. The system, LambdaTest claims, can reduce manual effort in test script generation by 40%-70%.

“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 company also claims its HyperExecute platform lets teams run tests up to 70% faster than traditional cloud grids, with 2.5x faster test resolution and 60% quicker error detection.

The startup has also developed features like flaky test identification, which PWC reports helped reduce time spent on error reporting and analysis by 40%. Its test intelligence system offers auto error categorization and smart analytics, along with automatic retries of failed tests and reordering of tests for faster feedback, LambdaTest 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,” said Quinn Li, Senior Vice President, Qualcomm and Global Head of Qualcomm Ventures. “LambdaTest’s comprehensive product suite is transforming software quality assurance with AI-driven autonomous testing systems. We are excited to support their journey.”

The startup, which competes with firms like BrowserStack and SauceLabs, plans to deploy the fresh capital to make deeper inroads in its existing markets and broaden its technology stack.

“Asad & team are a force of nature to be reckoned with — in a short period of time they have disrupted the entire market,” Nishant Rao, Avataar Ventures’ founding partner, said in a statement. “From creating the first AI-native, no-code QA solution to launching the only truly e2e Enterprise grade, secure test orchestration platform, they have totally changed the game.”

LambdaTest, which counts Premji Invest, Peak XV Partners and Blume Ventures among its backers, says it serves over 15,000 customers, including Fortune 500 and G2000 enterprises across financial services, insurance, travel, retail and healthcare. Since its inception in 2017, users have executed more than 1.2 billion tests on the platform to date, the company said.

Avendus advised LambdaTest for the new financing round.