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Sunday, July 08, 2007

AppLabs may float IPO to raise nearly $ 40mn

In a bid to provide an exit option to venture capitalist (VC) investor Sequoia Captial and raise funds to fuel inorganic growth plans, the world’s largest independent software testing company, AppLabs, is preparing to go public in a few months.

“It is possible we will float an IPO on the Indian bourses to raise roughly USD 40 million within the next 12 months,” Sashi Reddi, AppLabs Founder- CEO, said on Thursday.

There is also an option of looking at private equity (PE) funding to finance our expansion plans, including acquisitions over the next few months, Reddi said while announcing the rebranding of the company.

Sequoia Captial had invested USD 17 million in the company three years back. The rebranding of the company is a consequence of the USD 37 million acquisition of IS Integration that AppLabs carried out in September last year, catapulting it to the largest third party software testing company in the world.

AppLabs had also acquired a small testing company, KeyLabs, earlier in April 2005. The global software testing market is estimated at a whopping USD 54 billion in 2007 and projected to grow to USD 63 billion by 2010.

However, most of this is carried out in-house by software developers with third-party service providers occupying a minor, though a growing, part of the market.

AppLabs posted revenues of UDS 70 million last year, most of it from 120-odd customers in the US and 100 plus in the UK.

“However, we are now actively expanding into Europe, growing on our relationship with large customers like Capgemini,” Adam Ripley, senior vice-president, marketing, said, adding there were at least 50 active leads currently being pursued in countries like France, Germany etc.

The new branding was required, given the fact that AppLabs was now targeting new markets and had increased its offerings of new verticals, he said.

Meanwhile, a new testing facility, with a seating capacity of over 1,000 people, is slated to open in October this year in Hyderabad.

This apart, the company will also open its first testing facility in the UK soon. This will be the first in a series of labs AppLabs will set up in the UK and Europe over the next 12 months, Reddi said, reports DNA Money.


At 7:03 AM, Anonymous Anonymous said...


i joined applabs about 5 months before..this is a very lousy company.....
very bad proper chair to very small spce they are making 4 people sit...
they also took my origional certificates.....HR department told, with out certificates, no job..
they also promised me 15,000/- salary after training...but they are giving 12,000/ only.

HR department and manager are playing foot ball...

my manager told company is not doing new projects..



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