Bengaluru-based Tessolve, a prominent provider of semiconductor engineering services, has successfully secured a significant investment of $150 million from TPG Inc.'s growth arm. This substantial funding is earmarked for strategic acquisitions, the expansion of its state-of-the-art test labs, and the enhancement of its global delivery centers, as jointly announced by the companies. Tessolve, which is primarily owned by Hero Electronix, has a history of attracting institutional support, including a $40 million investment in 2021 from Singapore-based Novo Tellus Capital Partners.

The company has demonstrated remarkable growth over the years, with its revenue escalating from $25 million in fiscal year 2015-16 to exceeding $150 million by fiscal year 2025. Srini Chinamilli, co-founder and chief executive of Tessolve, highlighted the company's extensive expertise, stating, “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.” Echoing this sentiment, Bhushan Bopardikar, business unit partner at TPG Growth, added, “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.” For the transaction, Jefferies served as the financial advisor to Tessolve, while Rothschild advised TPG.

The investment underscores the increasing importance of semiconductors in the global economy. These critical components are indispensable across a wide array of industries, including data centers, automotive, and artificial intelligence. A recent report by Deloitte projects a robust expansion of the global semiconductor industry, anticipating growth from $627 billion in 2024 to an impressive $2 trillion over the next 15 years, further emphasizing the strategic value of companies like Tessolve.

Founded in 2004, Tessolve has cultivated a strong global footprint, establishing 11 semiconductor test and embedded labs worldwide. The company boasts partnerships with 18 of the world’s top 20 semiconductor firms and employs a dedicated team of over 3,000 engineers. These professionals are distributed across its various offices located in India, the United States, Germany, the United Kingdom, Singapore, and Malaysia, showcasing its extensive international reach and operational capacity. Hero Electronix, the technology arm of the Hero Group, entered the semiconductor sector in 2016 through its acquisition of a majority stake in Tessolve. Established in 2015, Hero Electronix has also diversified its portfolio by backing other technology ventures such as Qubo, specializing in smart security devices; Zenatix, an enterprise internet-of-things (IoT) company; and MyBox, focused on connected media devices.