Why we invested in Testlio?
Founded in Estonia 8 years ago by Kristel and Marko Kruustük, Testlio is among the leading crowdsourced testing companies in the world. The company offers a cutting-edge testing-as-a-service platform, which engages a global network of over 10,000 highly vetted expert testers, enabling 24/7
testing anywhere in the world. With its de facto HQ based in Tallinn, Testlio employs a team of close to 150 people in its offices in Estonia and US.
It is also worth mentioning, that Testlio’s co-founder and early CEO Kristel Kruustük has been an active advocate encouraging women to get involved in tech and entrepreneurship, underlined by Testlio’s own leadership team being 50% women and the entire company with approx. 40% women.
A-list customer list with industry-leading satisfaction ratings
The exponentially expanding software development and proliferation of digital products has made the software and user experience testing ever-more critical. Testlio works with owners of such products across verticals, of which many are market leaders within their category — including Amazon, American Express, Fox, Microsoft, Netflix, NBA, SAP and others. Collectively, the customers have awarded Testlio with an industry-leading 4.7 G2 rating and an NPS of 75.
Massive global market driven by rise in automation and crowdsourced testing
The global testing market is estimated by some analysts to grow at an average 13% growth rate to $60bn+ by 2027, driven by increased demand for mobile applications, cloud-based testing and automation. In the still fragmented market, Testlio is emerging as a key player in the outsourced testing segment and is thereby in a strong position to be one of the consolidators beyond its home market. With a run-rate revenue exceeding $20 million this year, Testlio is growing fast and has been profitable for 10 quarters. The company recently closed a $12m Series B financing round (led by Spring Lake), valuing the company slightly over $100m. The financing will be used to further increase the sales and
marketing team, as well as for investing in its own testing platform (automation, SaaS solution). Geographic expansion from current mainly US-focused client base is also in the cards for Testlio.
All-in-all we expect exciting scale-up opportunities to be realized over the coming years, with further upside potential from revenue multiple expansion with the rise in testing platform automation.
