Tessolve, a part of Hero Electronix, has raised $150 million from global investment firm TPG. This is the biggest funding round for a semiconductor engineering services company in India. The investment was made through TPG Growth which focuses on middle-market and growth companies.
Tessolve will use the money to expand its delivery centers worldwide, set up more advanced testing labs, and look for acquisitions. The company’s goal is to become an even stronger partner for both global and Indian semiconductor industries.
Earlier reports indicated that TPG would acquire a minority stake in Tessolve, valuing the company at approximately $475–$500 million.
Hero Electronix stepped into the semiconductor business in 2016 by acquiring Tessolve. Since then, Tessolve has grown its revenue from $25 million in FY16 to over $150 million in FY25.
In 2021, Singapore-based Novo Tellus Capital Partners invested $40 million in Tessolve and continues to hold a significant stake in the company.
Tessolve partners with 18–20 semiconductor companies and has a team of over 3,000 engineers working across India, the US, Germany, the UK, Singapore, and Malaysia. The company has also set up 11 semiconductor test and embedded labs around the world to provide complete engineering services.
The semiconductor industry is worth over $550 billion and plays a vital role in areas like data centers, cars, and artificial intelligence.
“This investment is a significant milestone for Tessolve and a testament to Hero Electronix’s vision to build leading technology ventures of global scale from India. I would like to congratulate and thank the entire Tessolve team for its unwavering commitment, which has made this milestone possible,” said Ujjwal Munjal, Vice Chairman, Hero Electronix, and Chairman, Tessolve.
“With TPG joining this journey, we see an exciting opportunity for Tessolve to scale further and become a key player in the global semiconductor value chain and also play an important role in the development of the Indian semiconductor ecosystem,” he added.
“Over the past couple of decades, Tessolve has built deep capabilities throughout the semiconductor engineering value chain, from chip architecture to design, test development, and embedded systems. We are excited to welcome TPG as a partner as we look to accelerate our next phase of organic and inorganic growth, strengthen our R&D efforts, and reach new heights,” said Srini Chinamilli, Co-founder & CEO, Tessolve.
“This would not have been possible without the dedication of our worldwide team and the consistent backing of Hero Electronix and Novo Tellus as our partners,” he added.
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