Tessolve Secures $150 Million Funding in Semiconductor Sector

Tessolve, a part of Hero Electronix, has successfully raised $150 million in funding from the global investment firm TPG. This funding is notable as it represents the largest fundraising effort by a semiconductor engineering services company in India. The investment is being channelled through TPG Growth, which focuses on middle-market and growth equity.

The funds will be utilised to enhance global delivery centres, expand advanced testing laboratories, and pursue strategic acquisitions. Tessolve aims to solidify its position as a pivotal partner in both global and Indian semiconductor ecosystems.

Investment Details

Previous reports suggested that TPG would take a minority stake in Tessolve, giving the company a valuation ranging from $475 to $500 million.

Tessolve’s Growth Journey

Hero Electronix made its entry into the semiconductor industry in 2016 when it acquired Tessolve. Since that time, the company has reportedly increased its revenues from $25 million in FY16 to over $150 million by FY25. Notably, in 2021, Singapore-based Novo Tellus Capital Partners invested $40 million, making them a significant shareholder in the company.

Collaboration and Workforce

Tessolve collaborates with 18-20 semiconductor firms and employs more than 3,000 engineers across various countries including India, the US, Germany, the UK, Singapore, and Malaysia. It has established 11 semiconductor testing and embedded labs globally to provide comprehensive engineering services.

The Semiconductor Industry Landscape

The semiconductor sector is valued at over $550 billion, playing a vital role in several industries such as data centres, automotive, and artificial intelligence.