Tessolve, a Hero Electronix venture and the leading independent semiconductor engineering services company, has secured $150 million in funding from private equity fund TPG Growth, company said on Monday.
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, it said.
TPG Growth is all set to acquire a significant minority stake in Tessolve, outbidding rival Advent International, at a valuation of $500 million, ET reported on August 26. TPG Growth is likely to invest about $150 million (Rs1300 cr) in Tessolve, it reported.
A clutch of investors including Advent, Kedaara Capital, Goldman Sachs and ChrysCapital are in discussions to acquire Tessolve and submitted the binding bids, ET had reported.
Hero Electronix is backed by Suman Kant Munjal of the Hero Group.
Currently, Hero Electronix holds a 58% stake in Tessolve. Novo Tellus Capital Partners, a Singapore-based PE firm, owns 32%, while the remaining shares are held by co-founder Raja Manickam, Qualcomm Ventures, individual investors including Mike Bartley, and employees via stock options.
Hero Electronix had acquired Tessolve from Manickam in 2016.
Founded in 2004, Tessolve is a full-stack semiconductor solutions provider. Its services span chip design, testing, production support, and embedded software. The company works with 80% of the world’s top 20 semiconductor firms and employs over 3,000 people across 11 countries, including the US, UK, Germany, Canada, Japan, Taiwan, Philippines, Malaysia, and Singapore.
Ujjwal Munjal, Vice Chairman, Hero Electronix and Chairman, Tessolve said, “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. With TPG joining this journey, we see an exciting opportunity for Tessolve to scale further and become 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 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.
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.”
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 an engineering services player in the $550 billion semiconductor market, Tessolve is a partner to 18 of the world’s top 20 semiconductor firms today, it said.
Bhushan Bopardikar, Business Unit Partner at TPG Growth said, “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.
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, it said.
TPG Growth is all set to acquire a significant minority stake in Tessolve, outbidding rival Advent International, at a valuation of $500 million, ET reported on August 26. TPG Growth is likely to invest about $150 million (Rs1300 cr) in Tessolve, it reported.
A clutch of investors including Advent, Kedaara Capital, Goldman Sachs and ChrysCapital are in discussions to acquire Tessolve and submitted the binding bids, ET had reported.
Hero Electronix is backed by Suman Kant Munjal of the Hero Group.
Currently, Hero Electronix holds a 58% stake in Tessolve. Novo Tellus Capital Partners, a Singapore-based PE firm, owns 32%, while the remaining shares are held by co-founder Raja Manickam, Qualcomm Ventures, individual investors including Mike Bartley, and employees via stock options.
Hero Electronix had acquired Tessolve from Manickam in 2016.
Founded in 2004, Tessolve is a full-stack semiconductor solutions provider. Its services span chip design, testing, production support, and embedded software. The company works with 80% of the world’s top 20 semiconductor firms and employs over 3,000 people across 11 countries, including the US, UK, Germany, Canada, Japan, Taiwan, Philippines, Malaysia, and Singapore.
Ujjwal Munjal, Vice Chairman, Hero Electronix and Chairman, Tessolve said, “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. With TPG joining this journey, we see an exciting opportunity for Tessolve to scale further and become 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 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.
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.”
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 an engineering services player in the $550 billion semiconductor market, Tessolve is a partner to 18 of the world’s top 20 semiconductor firms today, it said.
Bhushan Bopardikar, Business Unit Partner at TPG Growth said, “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.
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