Web testing platform Browserstack raises $50M from Accel Partners

Web-testing platform BrowserStack has raised $50 million from venture capital firm Accel in one of the largest financing rounds in the software space, underlining the growing appetite for companies in the space among investors.
Mumbai-based BrowserStack, which has since opened offices in Dublin and San Francisco, was till now a bootstrapped venture, a term that denotes a company which has not raised any institutional funding.
The transaction is expected to value the seven-year-old company at $400-500 million, said two sources familiar with the development. Both Accel India and Accel Growth have invested in the company as part of the round, with its US-based partner Ryan Sweeny joining the board.
The deal was led by Sweeny along with Accel India's Shekhar Kirani and another US partner Nate Niparko.
ET had reported in May last year that BrowserStack is being wooed by a slew of investors like Warburg Pincus, Sequoia Capital India, and Microsoft. While Microsoft had offered to pick up a minority stake at a valuation of $400-500 million, BrowserStack founders were seeking $800-million to $1-billion valuation.
Founded by IIT-Bombay batchmates - Ritesh Arora and Nakul Aggarwal - in 2011, BrowserStack is the fourth venture for the duo, and the first to succeed.
The company helps software developers visualise what their code will look like and how it will perform across browsers and operating systems like Windows, Android, and iOS. A code has to work across multiple browsers - Windows' Internet Explorer, Apple's Safari, and Google's Chrome.
Each browser has its nuances and the behaviour of codes varies on different platforms. The company powers 60 million tests per month across more than 1,200 devices and browser combinations.
BrowserStack was the winner of the inaugural ET Startup Awards in the Bootstrap Champ category in 2015. Last year, its annual recurring revenue were estimated to have reached $40-50 million, though the latest numbers could not be ascertained. It has 25,000 unique paying customers including companies like Microsoft, Twitter, Mastercard, Barclays, Gap, TD Ameritrade, Lincoln Financial, myToys, and Yahoo! Japan.