“For us the app economy it’s wearable, it’s hardware devices, it’s apps in cars,” said Reuveni. “Just like us they’re not just solely in the project space, the majority of their customers are recurring customers, they’re subscription customers, so from a financial perspective it was a very healthy company.”Īpplause offers a range of app testing services, and sees the app testing market in the round - in other words it’s not just focusing on mobile apps but looking at emerging categories such as wearables, smart TVs and in car apps. Testhub’s growth also impressed - both in terms of customer acquisition and revenue. “We saw a joint vision… As we talked to more and more customers, and we did due diligence on the company, their attention to focus on quality, and their attention on customers - the type of value that they bring to customers - it something that we really like,” he added. “First and foremost we liked the management team,” said Reuveni. Reuveni said Applause evaluated other European startups in the app testing space - including another German startup Testbirds, which recently took in a $2.9 million funding round - but he said Testhub’s team and approach to the market was the best fit. The plan is to double that by the end of this year.” We’re currently negotiating a new lease, and there’s significant additional headcount which is on the hiring horizon for that office - primarily in sales and marketing, but also in customer support,” he added. “The plan is to expand the office - we’re moving to a bigger office in Berlin. “We’re looking at Germany and Berlin as a technology hub to manage central Europe.” “We have today some strategic customers in Europe - primary in Germany and in Switzerland - and having this central European operation and the capability to cater on locale is also very important to us,” said Reuveni. On the testers front, the Testhub acquisition beefs up Applause’s network with another 20,000 testers, adding to the 120,000 Applause had already. And on the customer side it adds Testhub’s 250 to its circa 2,500. One because of their relationship in the local market, and their connection in the local market - and two because they are very engaged in the app economy, and they can help us grow with their experience and mature as a central European operation,” he added. “We liked BTH because they bring a lot of value into that deal. “From our perspective is a significant investment both on the acquisition side, as well as the cash inclusion and the hiring, and having another partner that helps to build companies in Europe and scale them to manage Central Europe is very important to us.” We want to grow into Europe in a big way,” he said. company and up until now we’ve operated primary in the U.S…. Reuveni confirmed Applause will be looking to do more acquisitions as it heads for IPO - either as a way to expand into new territories and markets, or technology acquisitions focused on grabbing complementary tech, with a focus on “mobile and app quality”. It’s the company’s second acquisition, after buying Apphance back in 2012. The TestHub team will form the basis of a new Berlin-based HQ for Applause, co-founder and CEO Doron Reuveni told TechCrunch, as it looks ahead to an IPO - likely in 18 to 24 months time.Įxpanding geographically to bring more testers into its network, as well as acquiring more European customers on the road to IPO is the clear strategy here. As part of the deal Berlin Technologie Holding (BTH) is becoming a strategic investor in Applause - and will also serve as an advisor, and help the company expand its customer base in the local market. The exact price of the acquisition is not being confirmed, but it’s described as a combination of cash and equity. The crowdsourced app testing startup formerly know as uTest, which is rebranding to Applause and earlier this year took in a $43 million Series E funding injection led by Goldman Sachs, has just spent some of that warchest on acquiring German rival Testhub to strengthen its hand in Europe - in a multimillion dollar deal.
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