Accel-backed mobile and web software testing platform Browserstack has acquired Berlin-based bug reporting startup Bird Eats Bug in a $20 million deal. Valued at $4 billion when it last raised capital in 2021, Browserstack is among the most valued Indian software products startups.
“BrowserStack has acquired Bird Eats Bug and committed a total of $20 million to the deal…. The investment includes upfront cash, stock, and future investment for product development,” the company said in a statement.
The San Francisco and Mumbai-based Browserstack, founded by IIT Bombay alumni Ritesh Arora and Nakul Aggarwal, allows companies such as Amazon, Microsoft, Nvidia and X to test their software on the cloud. Bird Eats Bug is Browserstack’s fifth acquisition.
Profitable since its early days, Browserstack said mergers and acquisitions (M&A) have played a key role in its growth strategy, and that it plans to pursue more deals in the coming quarters – armed with $250 million cash on its balance sheet to support organic and inorganic investments.
“While focusing on the testing space, Browserstack is also exploring adjacent areas to expand its total addressable market (TAM). Browserstack aims to create an end-to-end testing platform that will not only drive growth but also consolidate its position in the software testing market,” the company said in a statement, adding that it invests about $30 million in product research and development (R&D) every year.
Bird Eats Bug has a software-as-a-service (SaaS) tool that allows users – even those without a technical background – to create detailed bug reports. Browserstack claims that currently, the software development industry suffers from inefficiencies in the bug reporting processes.
Alongside the acquisition Bird Eats Bugs, Browserstack also announced the launch of a manual testing tool Bug Capture, which it claims allows users to debug issues 30% faster on average.
“This acquisition marks a significant step towards our goal of providing developer and QA (quality assurance) teams with a unified, seamless testing experience,” said Ritesh Arora, cofounder and CEO of Browserstack.
“By integrating Bug Capture’s innovative approach to bug reporting into our platform, we’re not just streamlining workflows; we’re boosting the productivity of development teams so they can focus more on building great products and less on managing the intricacies of the testing process,” he added.
Bootstrapped for the first seven years since its inception in 2011, Browserstack has raised more than $250 million – including a $200 million round in 2021 led by storied Silicon Valley investor Mary Meeker’s Bond Capital, which valued the company at $4 billion.
Source: Economic Times