Hyderabad-based software testing company, AppLabs Technologies is raising funds worth $25 million for financing its inorganic growth plans. | |
| The company has already secured funds worth $10 million from venture capital firm, Sequoia Capital India, and will be raising the remaining via debt financing. |
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| Addressing the media, Sashi Reddi, founder and chief executive officer of AppLabs Technologies, said, "We are planning to acquire a testing company which is strong in the financial services area. We are, therefore, raising $25 million via debt and equity, of which $10 million has been secured from Sequoia Capital India." |
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| The venture capital firm had earlier invested $7 million in AppLabs. This takes its total investment in the company to $17 million. |
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| "The company that we plan to acquire has a strong client base in the financial services segment. Post acquisition, our combined revenues are expected to increase to $75 million," Reddi said. |
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| Last year, AppLabs earned revenues of $30 million. Meanwhile, AppLabs has not ruled out raising funds from the market post acquisition. |
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| "We may go for a public offering but it is unlikely to happen in this financial year," Reddi said. |
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| AppLabs has an employee strength of over 1,000 in India and the US and plans to ramp up the headcount by 500-600 within a year. |
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