VCCircle

What if the merger between AppLabs Technologies and VisualSoft hasn't worked. The Hyderabad-based software testing company still has the confidence of its financial backers. Sequoia Capital India (formerly WestBridge Capital Partners) has invested another $10 million in the company. Earlier, WestBridge had invested $7 million. The total investment of Sequoia India in AppLabs will be $17 million, which is one of their largest investments in an Indian company (the other company being People Group which got $18 million).

A proposed three-way merger between AppLabs, VisualSoft and eSolutions India was dropped in March following some hurdles like delay in regulatory approvals or shareholders' resistance.

AppLabs is a software testing and development company that offers Quality Assurance Services, development Services and KeyLabs Certification Services. Sandeep Singhal, Managing Director, Sequoia Capital India, said, "We believe that the company will become the largest independent testing services company in the world in the near future. Our growing investments in AppLabs are indicative of our confidence in the organization and the management."

Go to press release.