Cloud-based software testing platform LambdaTest has raised $38 million in a Series D funding round, led by Avataar Ventures and participated by Qualcomm Ventures, bringing its total funding to $108 million. This investment will enable the San Francisco and Noida-headquartered startup to expand its presence in existing markets and advance its AI capabilities.

LambdaTest's platform provides infrastructure that allows companies to test their applications across more than 5,000 browser and operating system combinations, eliminating the need for expensive in-house testing labs. The platform also maintains labs with thousands of real devices for testing, offering a comprehensive solution for software testing.

The funding comes at a time when software testing is facing 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, with the majority of time consumed by maintenance and operational tasks like fixing broken tests, triaging, and debugging, and test environment setup.

To address this challenge, LambdaTest has launched its KaneAI platform, an "AI Native QA Agent-as-a-Service" that aims to automate many of these tedious testing tasks. The system can reduce manual efforts in test script generation by 40-70%. Additionally, its HyperExecute platform enables teams to run tests up to 70% faster than traditional cloud grids, with 2.5x faster test resolution and 60% quicker error detection.

LambdaTest's platform also includes enterprise security features and compliance certifications, including ISO 27001, SOC 2 Type 2, and GDPR, making it an attractive solution for regulated industries like financial services and healthcare.

"Asad & team are a force of nature to be reckoned with — in a short period of time they have disrupted the entire market," said Avataar founding partner Nishant Rao 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."

Founded in 2017, LambdaTest serves over 15,000 customers, including Fortune 500 and G2000 enterprises across sectors like financial services, insurance, travel, retail, and healthcare. Users have executed more than 1.2 billion tests on the platform to date. The startup, which competes with firms including BrowserStack and SauceLabs, plans to deploy the fresh capital to make deeper inroads in its existing markets and also broaden its technology stack.

LambdaTest has also developed features like flaky test identification, which PWC reports helped save 40% of time spent on error reporting and analysis. 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.

"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 funding and LambdaTest's innovative approach to software testing are expected to have a significant impact on the industry, enabling companies to accelerate their testing processes, reduce costs, and improve overall quality. As the demand for AI-powered testing solutions continues to grow, LambdaTest is well-positioned to lead the charge and revolutionize the software testing landscape.