Cloud-based testing firm LambdaTest has raised $38 million in fresh funding, the California-based company announced.
The funding round was led by Avataar Venture Partners, with Qualcomm Ventures also being on board.
“This pivotal investment will accelerate LambdaTest’s mission to democratize quality engineering through innovation,” the company declared in a LinkedIn post.
LambdaTest, a major player in the cloud-based testing space, with a range of product launches and partnership since the start of this year, stressed that GenAI-powered innovations “address a pressing need” for streamlined and efficient QA processes.
“Software development lifecycles become faster, more rigorous, and increasingly complex,” LamdaTest wrote.
‘World’s first’
The firm went on to claim that “our foundation in LambdaTest’s cloud-based platform gives us an edge in delivering the [KaneAI] solution at scale.
The firm singled out its relatively new KaneAI platform, which the company claims to be the world’s first end-to-end software AI test agent.
KaneAI, which was only launched in August, is aimed at authoring, debugging and evolving end-to-end use tests using natural language and should improve the way teams create, manage, and execute automated tests.
Automation testing has long been a critical part of software development, but it often comes with significant challenges, stressed Asad Khan, the firm’s co-founder and current CEO.
The general consensus within the industry is that test automation frequently lags behind development sprints, with brittle tests requiring constant maintenance.
Even low-code or no-code solutions have a learning curve, and often start to break down at scale, making it difficult for test automation setup to keep pace with evolving testing needs.
So what makes KaneAI stand out? Khan claimed “it is a first-of-its-kind AI test assistant with industry-first AI features like test authoring, management and debugging capabilities built from the ground up for high-speed quality engineering teams.”
He explained that KaneAI enables users to create and evolve complex test cases using natural language, which should reduce the time and expertise required to get started with test automation.
Since the tests are using natural language, they also provide an opportunity for different personnel to participate in the test-case creation process, he added.
“Over the past 6 years, we have listened to feedback from the users on how to solve their testing challenges.”
– CEO Asad Khan
When asked why this should be seen as a break with established platforms out there, Khan argued that, unlike traditional low-code or no-code solutions that hit scalability limits, KaneAI provides two-way test editing features, that enable users to either author in code or in natural language.
“In addition, it allows multi-language code export across all major frameworks along with unique Instruction-to-Code and Code-to-Instruction translation features,” he continued.
“This enables effortless maintenance of tests for scale and ensures that even the most intricate testing needs are met.”
Moreover, according to Khan, the solution also improves the debugging process with AI-powered test observability and real-time root cause analysis capabilities.
“This helps large-scale distributed engineering teams minimize application downtime and accelerate release cycles, without compromising on the product quality,” he said.
This product came about as “over the past 6 years, we have listened to feedback from the users on how to solve their testing challenges,” Khan disclosed.
He revealed that LambdaTest’s engineering and product team has spent over a year to build the product with the aim to “push the boundaries of what is possible in quality engineering.”
“They ensured that every aspect of KaneAI could meet the real-world challenges that testing teams face daily. This journey was about developing an AI-powered test agent and reimagining what test automation could be,” he noted.
Real-time debugging
The fresh funding comes amid a busy year for LambdaTest. It recently brought a new testing tool to the market, which contained a debugging capability and live inspection feature.
Called the Live Inspect feature, it allows users to interact with their automated test devices in real time, which should improve the efficiency and effectiveness of automated tests, according to the firm.
So the difference is, the company explained, that “teams can now troubleshoot issues directly as they arise with their automation scripts, moving beyond mere video playback to active engagement with their applications.”
Apart from new launches, LambdaTest recently had struck a partnership with Netlify to enhance the testing capabilities of QA teams’ developers, as the collaboration should enable them to test and build high-quality web applications more efficiently.
The firm said that its integration with Netlify, a platform for businesses to build highly-performant and dynamic websites, as well as e-commerce stores and web apps, should make quite a change for developers.
Mayank Bhola, co-founder and head of product at LambdaTest, pointed out that “for developers striving to deliver stable and secure web applications, the integration between LambdaTest and Netlify represents a significant breakthrough.”
He explained that “leveraging this integration, developers can benefit from Netlify’s deployment processes and LambdaTest’s testing capabilities, ensuring the reliability and quality of their apps across environments and devices.”
The San Francisco-headquartered cloud automation testing platform provider offers developers a range of cloud-based testing solutions, such as cross-browser compatibility testing, web and app automation testing, as well as real device testing.
Meanwhile, Netlify users can integrate testing into their deployment workflows and test their web applications before deployment through the deal with LambdaTest.
This is because Netlify ecosystem will now embed LambdaTest tools, Bhola explained, allowing developers access to a platform for testing web apps straight from their deployment pipelines.
“Workflows operate more efficiently, and deployments are quicker owing to this integration, eliminating the need to manage complex setups or switch between multiple tools,” he claimed.
In-browser solution
In addition to the activity in recent months, one of LambdaTest’s most-talked about moves this year was the launch of a new tool that allows QA teams to run tests directly within their browsers.
The firm’s LambdaTest Accessibility DevTools Chrome offers a range of scanning options, prioritises critical issues for efficient resolution, and integrates with existing workflows “to enhance development efficiency, ensure compliance, and promote digital inclusivity.”
“It aims to significantly improve web accessibility, making it easier for QA testers, developers and product managers to test, manage, and report accessibility issues directly within their browsers,” explained Bhola.
He pointed out that the tool offers accessibility scans with options like full page scans, targeted partial page scans, automated multi-page scans, and advanced workflow scans, “helping to identify and address accessibility issues throughout the website.”
Moreover, Bhola stressed that the solution “enables issue discovery to pinpoint and correct common accessibility errors, streamlining the resolution process.”
When asked to elaborate, he said “it provides prioritised issue management that categorises and tackles accessibility issues.”
With the European Accessibility Act of 2025 in effect, ensuring website accessibility is a legal requirement for EU businesses, Bhola continued, as he said that “this tool helps developers integrate accessibility testing seamlessly into their workflows, meeting EAA compliance and promoting inclusivity.”
He concluded by saying that “as the demand for accessibility tools grows, tools like this one become essential for businesses to ensure their digital content is accessible to all.”
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