BrowserStack Launches $125 Million ESOP Buyback as Profits Fund Platform Expansion and M&A Push

New updates have been reported about BrowserStack.

BrowserStack has authorized a $125 million ESOP and secondary share buyback for employees and early investors, signaling strong profitability and balance sheet health as it scales its AI-driven testing platform. The program, its third to date and among the largest ESOP buybacks in the Indian startup ecosystem, will provide liquidity to more than 500 current and former employees and early backers, bringing total buybacks to over $275 million. Management is funding the transaction entirely from internal accruals, underscoring consistent cash generation and the company’s ability to return capital while continuing to invest in growth. Co-founder and CEO Ritesh Arora emphasized that the buyback is designed to reward early contributors and reinforce an ownership mindset as the company ramps AI-led innovation across its product suite.

Strategically, the buyback coincides with BrowserStack’s shift from being a pure testing infrastructure provider to a full end-to-end software testing platform. The company has expanded its portfolio from five to 21 products, now covering the full testing lifecycle, including functional, accessibility, visual testing, test management, and debugging, supported by access to more than 30,000 real devices and browsers across 21 global data centers. Backed by investors such as Accel, Bond, and Insight Partners but funding this program from operations, BrowserStack is using its strong cash flows to pursue inorganic growth and market consolidation, actively scouting acquisitions in developer tools following recent deals for Requestly and Bird Eats Bug. For executives and stakeholders, the move signals a mature, cash-generative private company balancing substantial shareholder liquidity, employee wealth creation, and an aggressive growth and M&A agenda in a consolidating developer tooling and software testing market.