Semiconductor firm Tessolve raises $150 mn from TPG Growth for acquisitions, expansions

Mumbai: Bengaluru-based Tessolve, which offers semiconductor engineering services, has secured $150 million from investment firm TPG Inc.’s growth arm for acquisitions, expanding its test labs, and strengthening its global delivery centers, the companies said in a statement on Monday.

Tessolve, majorly owned by Hero Electronix, has attracted several institutional backers including Singapore-based Novo Tellus Capital Partners, which invested $40 million in the company in 2021. The company’s revenue increased from $25 million in 2015-16 to over $150 million in FY25. 

“Over the past couple decades, Tessolve has built deep capabilities throughout the semiconductor engineering value chain, from chip architecture, to design, test development and embedded systems,” said Srini Chinamilli, co-founder and chief executive, Tessolve.

“Over the years, Tessolve has grown from a test engineering lab to a full-scale semiconductor engineering services provider, with end-to-end capabilities across the semiconductor value chain,” added Bhushan Bopardikar, business unit partner at TPG Growth.

Jefferies advised Tessolve on the transaction while Rothschild acted as TPG’s financial advisor.

Semiconductor drive

Semiconductors have become crucial to the global economy given their wide range of applications across industries such as data centers, auto, and artificial intelligence. Deloitte in a recent report said it expects the global semiconductor industry to grow from $627 billion in 2024 to $2 trillion over the next 15 years.

Founded in 2004, Tessolve has built 11 semiconductor test and embedded labs globally. It has partnered with 18 of the world’s top 20 semiconductor firms and employs over 3,000 engineers across offices in India, the US, Germany, the UK, Singapore and Malaysia, according to the company. 

Hero Electronix entered the semiconductor space in 2016 by acquiring a majority stake in Tessolve. Established in 2015, the technology arm of the Hero Group has also backed Qubo, which operates in smart security devices, Zenatix, an enterprise internet-of-things company and MyBox, a connected media devices business.