Tessolve, a Hero Electronix venture, raises $150 million from TPG

Tessolve, a Hero Electronix venture and the largest independent semiconductor engineering services company globally, has secured $150 million in funding from leading global alternative asset management firm TPG.

Tessolve will use the additional capital to strengthen global delivery centers, expand advanced test labs and accelerate strategic acquisition, as it looks to consolidate the company’s position as a key enabler to the global and Indian semiconductor ecosystem. TPG invested through TPG Growth, the firm’s middle market and growth equity platform.

Ujjwal Munjal, Vice Chairman, Hero Electronix and Chairman, Tessolve remarked: “This investment is a significant milestone for Tessolve and a testament to Hero Electronix’s vision to build leading technology ventures of global scale from India. I would like to congratulate and thank the entire Tessolve team for its unwavering commitment which has made this milestone possible.

"With TPG joining this journey, we see an exciting opportunity for Tessolve to scale further and became a key player in the global semiconductor value chain and also play an important role in the development of the Indian semiconductor ecosystem”

Hero Electronix entered the semiconductor space in 2016 with its acquisition of Tessolve, marking the Group’s foray into deep-tech. Over the years, Tessolve has scaled into a global engineering leader, attracting institutional backers and scaling revenues from $25 million in FY16 to over $150 million in FY25. In 2021, Singapore-based Novo Tellus Capital Partners had invested $40 million in Tessolve and continues to be a significant shareholder, underscoring the confidence in both existing and new investors in Tessolve’s long-term trajectory.

Srini Chinamilli, Co-Founder & CEO, Tessolve, said, “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.

"We are excited to welcome TPG as a partner as we look to accelerate our next phase of organic and inorganic growth, strengthen our R&D efforts, and reach new heights. This would not have been possible without the dedication of our worldwide team and the consistent backing of Hero Electronix and Novo Tellus as our partners.”

Semiconductors have become extremely strategic to the global economy given its importance to multiple industries like data centers, auto, others and its core role in powering the artificial intelligence (AI) revolution. As a leading engineering services player in the US$550 billion semiconductor market, Tessolve is a partner to 18 of the world’s top 20 semiconductor firms today.

Tessolve employs over 3,000 engineers across offices in India, US, Germany, UK, Singapore, and Malaysia. It has made significant investments to build 11 semiconductor test and embedded labs across the globe to help enable a comprehensive solution offering to its clients.

Bhushan Bopardikar, Business Unit Partner at TPG Growth said: “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. As a partner-of-choice for many of the world’s fast growing, tech-forward organizations, we are excited to partner with Srini and his team and have Tessolve among our portfolio of innovative tech businesses.”

Jefferies acted as the advisor to the company and shareholders on this transaction. Rothschild acted as the financial advisor to TPG.