Tessolve raises $75 million from US-based Vector Line Capital

Semiconductor engineering services firm Tessolve, a Hero Electronix venture, has raised $75 million (about Rs 725 crore) from US-based Vector Line Capital, as it pursues acquisitions to expand its capabilities and global presence.

Vector Line, a strategic investment company that invests exclusively in semiconductors and the chip supply chain, joins existing investors TPG and Novo Tellus. This is Vector Line's first investment in India, Tessolve said in a statement.

The funds will support Tessolve's growth, including strategic acquisitions that add to its existing capabilities, widen its service offerings, and strengthen its global footprint.


Tessolve is in advanced discussions to close multiple acquisitions over the next couple of quarters.

"Two decades ago, we started with silicon test engineering. Today we are designing and productising complete chips for the companies building AI infrastructure - that shift took sustained investment in capabilities, platforms, and talent, well before the demand arrived.

"This investment will support acquisitions that further strengthen our offerings, and Vector Line's focus on the sector and their relationships will add significant value," Tessolve co-founder and CEO Srini Chinamilli said.

Founded in 2004, Tessolve offers complete turnkey solutions from chip architecture and design through validation, test and embedded systems. It employs over 3,500 engineers across 10 countries, with 9 laboratories globally.

Geoffrey Baldwin, founder and Chief Executive Officer of Vector Line Capital, said, "Semiconductors are becoming extremely complex, making them harder to design, validate and test. Leading technology companies are increasingly turning to engineering partners who can carry work across the whole development cycle".

"Tessolve is among the few companies that can do this at scale across the semiconductor value chain, globally. Tessolve's success is evidenced by its blue-chip customer base, having most of the world's largest semiconductor companies as customers."

Tessolve currently works with 18 of the world's top 20 semiconductor companies.

The investment comes a year after Tessolve raised $150 million from US global alternative asset management firm TPG in September 2025. That deal was billed as the largest fundraise by a semiconductor engineering services company in India.

Singapore-based private equity firm Novo Tellus Capital Partners invested $40 million in Tessolve in 2021.

Last month, Chinamilli told PTI that the company was in active talks to acquire two firms -- one in the US and one in India -- and aimed to cross annual revenue of $500 million (about Rs 4,700 crore) within three to four years.

Tessolve's revenue rose to Rs 1,526 crore in FY26 from Rs 1,157 crore in FY25. The company expects to exceed Rs 2,000 crore in revenue in the current financial year.

In November 2024, Tessolve acquired Germany-based chip design firm Dream Chip Technologies for Rs 400 crore.