Hero Electronix-Owned Tessolve Secures $75 Mn To Expand Semiconductor Capabilities

Hero Electronix-owned semiconductor firm Tessolve has successfully raised $75 million in a funding round led by Vector Line Capital, with participation from existing backers TPG and Novo Tellus Capital Partners. The additional capital will help the company expand its semiconductor capabilities, make strategic acquisitions, and strengthen its international business operations.

Tessolve has been in advanced talks for multiple acquisitions over the next few quarters, following its recent acquisition of Germany's Dream Chip Technologies GmbH for ₹400 crore in November 2024.

Tessolve, founded in 2004 by Srini Chinamilli, P Raja Manickam, and Veerappan V, offers comprehensive semiconductor engineering services, including chip architecture, design, validation, testing, and embedded systems. The company leverages in-house pre-engineered semiconductor platforms and design flows to reduce development cycles while maintaining relationships with leading foundries, IP, EDA, and test equipment companies.

Tessolve has collaborated with top hyperscalers and 18 of the world's leading semiconductor companies.

Hero Electronix, the electronics and technology arm of Hero Group, took a controlling stake in Tessolve in 2016, aiming to complete a phased acquisition of a majority stake by the end of that year. In a previous funding round in 2025, Tessolve raised $150 million led by TPG Growth, bringing its cumulative funding to $265 million. The latest round brings Tessolve's total funding to $265 million.

This investment in Tessolve aligns with the growing momentum in India's deeptech sector, particularly in semiconductor and chip design startups, which have attracted increased investor interest. The government's ₹1.25 lakh crore India Semiconductor Mission 2.0, launched to build India's chip design and manufacturing ecosystem, further supports this trend.

Other examples of recent funding include AI-native semiconductor verification startup VerifAIX, which raised $5 million in a seed round in September, and HrdWyr, which secured $13 million in Series A funding.