AppLabs secures $10 mn funding

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.

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."

The venture capital firm had earlier invested $7 million in AppLabs. This takes its total investment in the company to $17 million.

"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.

Last year, AppLabs earned revenues of $30 million. Meanwhile, AppLabs has not ruled out raising funds from the market post acquisition.

"We may go for a public offering but it is unlikely to happen in this financial year," Reddi said.

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.