Tessolve Semiconductor is raising fresh capital not simply to grow what it already has, but to buy its way deeper into the semiconductor value chain. The Hero Electronix-owned company has secured $75 million, or about ₹718 crore, as it looks to expand capabilities through acquisitions and strengthen its international business.
The round was led by Vector Line Capital, with existing investors TPG and Novo Tellus Capital Partners also participating. Tessolve said the capital will be used to acquire businesses that complement its existing capabilities, broaden its service portfolio and expand internationally.
The company is already in advanced discussions for multiple acquisitions that could close over the next few quarters. Founded in 2004 by Srini Chinamilli, P Raja Manickam and Veerappan V, Tessolve began with silicon test engineering and has since expanded across chip architecture, design, validation, testing and embedded systems. The company is now also designing AI and high-performance computing chips using internally developed semiconductor platforms and design flows.
That expansion has increasingly included acquisitions. In November 2024, Tessolve acquired Germany-based Dream Chip Technologies in a ₹400 crore transaction, strengthening its semiconductor design capabilities. The company says it now works with major hyperscalers and 18 of the world’s top 20 semiconductor companies. Hero Electronix has held a controlling stake in Tessolve since 2016.
The latest round takes Tessolve’s cumulative funding to about $265 million, following a $150 million raise led by TPG Growth in 2025. The broader story is the company’s shift from being primarily a semiconductor engineering-services provider toward controlling more of the journey from chip design to productisation — with acquisitions now becoming a central part of how it plans to get there.
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