Applabs gets $10 mn funding from Sequoia Capital
Hyderabad, June 29: Planning to acquire a US-based company, Applabs Technologies, a software testing compoany, announced that it has received commitment for an additional USD 10 million investment from Sequoia Capital India(SCI), a venture capital firm to be used for the acquisition.
SCI has already invested in AppLabs USD seven million in equity financing, taking their total committed investments to USD 17 million making it one of their largest investments in an Indian company.
AppLabs Technologies CEO Sashi Reddy told the media today that they expect the USD 25 million acquisition of the US-based financial services testing company to be completed by August 2006.
With a projected 60 per cent growth, post-acquisition, the company's turnover is expected to be USD 75 million, up from the current USD 30 million.
AppLabs, which had called off the merger deal with VisualSoft earlier in the year also plans to group up its head count by 500 over the next 12 months from 950, the current level.
SCI Managing Director Sandeep Singhal said AppLabs funding agreement is likely to be formalised over the next few days. SCI will make an infusion of USD 10 million in the acquisition by AppLabs Technologies, which is trying to raise the remaining USD 15 million.
The company may consider a IPO sometime in 2007 'after working at least three quarters as a combined company,' Mr Reddy said on the possible of raising capital and providing an exit to the venture capital funding.