Tessolve Secures $75M from Vector Line Capital to Boost Growth

Tessolve, a semiconductor engineering services company backed by Hero Electronix, has announced a significant $75 million funding round led by US-based Vector Line Capital. This infusion of capital is intended to accelerate Tessolve's acquisition strategy and broaden its technological capabilities and international presence.

Vector Line Capital focuses solely on investments within the semiconductor sector and the chip supply chain, marking this as its inaugural investment in India. The firm joins Tessolve's current investors, including TPG and Novo Tellus Capital Partners, who have supported the company through earlier funding rounds.

According to Tessolve, the fresh funds will facilitate growth by enabling the company to pursue strategic acquisitions that enhance its service offerings and strengthen its footprint worldwide. Tessolve is reportedly in advanced negotiations to finalize multiple acquisitions within the next few quarters, signaling an active expansion phase.

Co-founder and CEO Srini Chinamilli highlighted the company's evolution over the past twenty years. He explained that Tessolve began with a focus on silicon test engineering but has since expanded to design and productize complete chips used in building AI infrastructure. This transformation required sustained investment in talent, platforms, and capabilities before the current surge in demand.

"This investment will support acquisitions that further strengthen our offerings," Chinamilli said, adding that Vector Line's dedicated focus on the semiconductor sector and its extensive industry relationships will bring significant value to Tessolve.

Founded in 2004, Tessolve provides end-to-end solutions across the semiconductor development lifecycle, including chip architecture, design, validation, testing, and embedded systems. The company employs over 3,500 engineers across 10 countries and operates nine laboratories worldwide.

Vector Line Capital’s founder and CEO Geoffrey Baldwin commented on the increasing complexity of semiconductor design, validation, and testing. He noted that technology companies are turning to partners capable of supporting the entire development cycle. "Tessolve is among the few companies that can do this at scale across the semiconductor value chain globally," Baldwin said. He pointed out that Tessolve serves many of the world’s largest semiconductor firms, working with 18 of the top 20 companies in the industry.

This latest funding follows previous investments, including $20 million (approximately ₹150 crore) raised from TPG in September 2025, which was described as the largest round for an Indian semiconductor engineering services firm at the time. Additionally, Novo Tellus Capital Partners, based in Singapore, invested ₹40 million in 2021.

Recently, Tessolve has been actively pursuing acquisitions to expand its capabilities. Last month, Chinamilli told PTI that the company was negotiating to acquire two firms — one in the United States and another in India — with a goal to surpass annual revenues of ₹4,700 crore within three to four years.

Financially, Tessolve posted revenues of ₹1,526 crore in fiscal year 2026, up from ₹1,157 crore in FY25, and expects to exceed ₹2,000 crore in the current fiscal year. The company’s growth strategy includes inorganic expansion, illustrated by its November 2024 acquisition of Germany-based Dream Chip Technologies for ₹400 crore.

Tessolve’s trajectory reflects the growing demand for semiconductor engineering expertise as chip design and manufacturing become increasingly complex. With this fresh capital injection and ambitious acquisition plans, Tessolve aims to solidify its position as a leading player in the global semiconductor services market.