Tessolve raises $75 million from Vector Line Capital to fund global expansion

Bengaluru-based semiconductor engineering firm Tessolve has raised $75 million (roughly Rs 725 crore) from US investment firm Vector Line Capital to accelerate international acquisitions and expand its chip development operations.

The capital injection marks the first investment in India by Vector Line Capital, a sector-focused fund that manages more than $1.6 billion and invests exclusively in semiconductor companies and supply chains. Vector Line joins alternative asset manager TPG, which invested $150 million in September 2025, and Singapore-based private equity firm Novo Tellus Capital Partners, which put in $40 million in 2021, on the company’s share register.

Tessolve, backed by Hero Group's electronics arm Hero Electronix, said it intends to deploy the proceeds quickly, with advanced negotiations already underway to conclude multiple acquisitions over the next two quarters.

What Tessolve plans to buy

The funding arrives as Tessolve steps up work across complex silicon projects, including artificial intelligence hardware, high-performance computing, and mixed-signal semiconductors. The company has evolved from a testing shop into a full-scale turnkey engineering partner capable of taking chips from architecture and logic design through to laboratory testing and embedded software.

"Two decades ago, we started with silicon test engineering," said Srini Chinamilli, co-founder and chief executive of Tessolve. "Today we are designing and productising complete chips for the companies building AI infrastructure — that shift took sustained investment in capabilities, platforms, and talent, well before the demand arrived. This investment will support acquisitions that further strengthen our offerings."

The firm has previously relied on strategic buyouts to break into new markets. In November 2024, it acquired German chip design business Dream Chip Technologies for Rs 400 crore. Chinamilli said the company is currently evaluating acquisition targets in both India and the United States.

Global demand and Indian semiconductor momentum

The expansion reflects a broader shift across global technology supply chains, where rising chip complexity has pushed major hardware developers toward single engineering partners that can handle end-to-end design cycles. Tessolve currently employs over 3,500 engineers across 10 countries, runs nine testing laboratories globally, and supplies 18 of the world's 20 largest semiconductor manufacturers, alongside major cloud hyperscalers.

"Semiconductors are becoming extremely complex, making them harder to design, validate and test," said Geoffrey Baldwin, founder and chief executive of Vector Line Capital. "Leading technology companies are increasingly turning to engineering partners who can carry work across the whole development cycle. Tessolve is among the few companies that can do this at scale across the semiconductor value chain."

The company is also anchoring engineering support for India's domestic semiconductor push, working alongside newly commissioned commercial foundries, outsourced semiconductor assembly and test (OSAT) plants, and homegrown chip startups.

Financially, Tessolve posted revenue of Rs 1,526 crore for the financial year ending 2026, up from Rs 1,157 crore the prior year. Leadership expects to cross Rs 2,000 crore during the current financial year and targets $500 million (about Rs 4,700 crore) in annual revenue within four years.