Transaction:
- Tessolve, a Bengaluru-based semiconductor engineering services firm, has raised USD 150 million (Rs. 1,323 crore) from TPG Growth, through its middle-market and growth equity platform, at a valuation of USD 475 – 500 million.
- The company is majority owned by Hero Electronix, the technology arm of the Hero Group, which first acquired a controlling stake of 58% in Tessolve in 2016.
About Tessolve Semiconductor Private Limited:
- Established in 2004, Tessolve provides end-to-end semiconductor engineering services including chip architecture, design, test development, and embedded systems.
- The company has over 3,000 engineers across 10 countries, operates 11 semiconductor test and embedded labs, and works with 18 of the top 20 global semiconductor firms.
About Hero Electronix Private Limited:
- Established in 2015, Hero Electronix is the technology arm of the Hero Group, building businesses rooted in deep engineering expertise at the intersection of hardware, software, and AI.
- Its portfolio includes Tessolve (Semiconductors), Qubo (Smart security devices), Zenatix (Enterprise IoT), and MyBox (Connected media devices).
About TPG Growth:
- Founded in 1992 and headquartered in San Francisco, is a global alternative asset management firm with USD 269 billion in AUM, investing across private equity, credit, impact, real estate, and market solutions through sector-focused teams worldwide.
- TPG Growth is the firm’s middle-market and growth equity platform, which provides expansion capital to companies with strong growth potential.
Rationale:
- Tessolve has demonstrated strong growth, with revenues rising from USD 25 million in FY16 to over USD 150 million in FY25.
- The company has actively pursued acquisitions—Dream Chip Technologies (Germany, 2023), Pico2Femto (2022), Test & Verification Solutions (2020), and Dynamics Test Solutions (US, 2010)—to strengthen its global presence and high-performance chip design capabilities.
- Funding will be used to expand advanced test labs, strengthen global delivery centres, and pursue further acquisitions, enabling both organic and inorganic growth.
- Tessolve aims to deepen its role in both Indian and global semiconductor ecosystems.
- India’s semiconductor mission, anchored by the Rs. 91,000 crore Dholera fab project involving Tata Electronics, Taiwan’s PSMC, ISM, and the Gujarat government, reflects the country’s strategic push for a self-reliant semiconductor ecosystem.
- According to a report, The Indian semiconductor industry is projected to grow from USD 34 billion in 2023 to USD 100 billion by 2032, while the global market is expected to reach USD 1 trillion by 2030, offering strong industry tailwinds.
- Novo Tellus Capital Partners, which invested USD 40 million in Tessolve in 2021 at a valuation of USD 100 million, remains a key shareholder alongside majority owner Hero Electronix, having earlier held a 32% stake.
- Tessolve is well-positioned to capture future opportunities as semiconductor demand accelerates across transformative industries such as AI, automotive, and data centres.
- Tessolve is well-positioned to capture future opportunities as demand for semiconductors accelerates across transformative industries such as AI, automotive, and data centres.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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