Tessolve in talks to acquire two firms, eyes USD 500 million revenue in 3-4 years

New Delhi: Semiconductor engineering services firm Tessolve, a Hero Electronix venture, is in active talks to acquire two more companies -- one based in the US and another in India -- as it targets annual revenue of over USD 500 million (about Rs 4,700 crore) within the next three to four years, its Co-Founder and Chief Executive Officer Srini Chinamilli said.

"We are in active talks with some companies we have not yet announced... We are talking to one company in the US, and there is one local (Indian) company as well," Chinamilli told PTI in an interview, without naming the companies involved. One of the deals is expected to close in the next couple of months, while the other is likely to be completed by the end of the current fiscal year, he said.

Read more: Chip majors make beeline for Semicon to build wider ecosystem with Indian talent


Most of Tessolve's acquisitions are aimed at adding capabilities or geographic presence the company does not already have, rather than purely boosting revenue, Chinamilli said. Its most recent acquisition, Germany-based chip design firm Dream Chip Technologies, has "more than doubled" its revenue since being acquired in 2024, he said.

Tessolve acquired a 100 per cent stake in Dream Chip in November 2024 for Rs 400 crore.

"Our aspiration is to cross half a billion dollar revenues in the next three-four years," Chinamilli said, adding that the company's goal is to become the "number one semiconductor engineering solutions company in the world."

The company's revenue rose to Rs 1,526 crore in the financial year ended March 2026 (FY26), up from Rs 1,157 crore in FY25.

Read more: Domestic demand, labour supply give India structural advantage in semiconductor push: Bain & Co

Tessolve had earlier set a target of Rs 2,000 crore in revenue for the current financial year (FY27) and said it remained on track to exceed that figure. "We will for sure exceed Rs 2,000 crore... We have good organic growth. Organic growth is 20 per cent plus," Chinamilli said, adding that overall growth was expected to be higher still this year.

Work linked to artificial intelligence (AI) chips and data centres now accounts for at least 25 per cent of Tessolve's revenue, a share that has been rising steadily over the past two years, he said.

Tessolve raised USD 150 million from US private equity firm TPG in September 2025, its largest fundraise to date. Tessolve plans to utilise the capital to strengthen global delivery centres, expand advanced test labs and accelerate strategic acquisitions.

The company currently employs over 4,000 people across 12 countries, with around 85 per cent of its workforce based in India across nine cities. Besides India, the US, Germany and the Netherlands, Tessolve has also expanded into Taiwan and is growing its presence in Malaysia.

Asked whether Tessolve was preparing for a stock market listing, Chinamilli said it was "too early to comment," describing an initial public offering (IPO) as "definitely one possibility" under consideration, though the company had not yet begun formal preparations.