Hero Electronix's semiconductor firm Tessolve raises $150 million from TPG Growth

Tessolve, a Hero Electronix venture and one of India’s leading independent semiconductor engineering services companies, has raised $150 million in funding from TPG Growth, the private equity firm’s middle-market and growth equity platform.

Advertisment

The fresh capital will be used to expand global delivery centers, build advanced test laboratories, and accelerate strategic acquisitions as the company seeks to strengthen its position in the global semiconductor value chain.

The fundraising marks the largest investment to date in India’s semiconductor engineering services sector. It follows months of interest from a clutch of private equity firms, including Advent International, Kedaara Capital, Goldman Sachs, and ChrysCapital, that had submitted binding bids, according to earlier reports.

Hero Electronix, backed by Suman Kant Munjal of the Hero Group, currently owns 58% of Tessolve. Novo Tellus Capital Partners, a Singapore-based private equity investor, holds 32%, while co-founder Raja Manickam, Qualcomm Ventures, individual investors such as Mike Bartley, and employees via stock options own the remainder. Hero Electronix acquired Tessolve from Mr. Manickam in 2016, marking its entry into the semiconductor space.

Founded in 2004, Tessolve provides full-stack semiconductor solutions spanning chip design, testing, production support, and embedded software. The company works with 18 of the world’s top 20 semiconductor firms and employs more than 3,000 engineers across 11 countries, including the United States, Germany, the United Kingdom, Singapore, and Malaysia. It has built 11 semiconductor test and embedded labs worldwide.

Ujjwal Munjal, vice chairman of Hero Electronix and chairman of Tessolve, called the deal “a significant milestone” for both companies, saying it would help Tessolve scale further and play an important role in India’s semiconductor ecosystem.

Over the past decade, Tessolve has grown from $25 million in revenue in fiscal 2016 to more than $150 million in fiscal 2025. In 2021, Novo Tellus invested $40 million and remains a significant shareholder.

Srini Chinamilli, Tessolve’s co-founder and chief executive, said the company had built “deep capabilities throughout the semiconductor engineering value chain, from chip architecture to test development and embedded systems.”

The semiconductor industry, valued at more than $550 billion globally, has become increasingly strategic as chips power everything from automobiles to data centers and artificial intelligence systems.

Bhushan Bopardikar, business unit partner at TPG Growth, said Tessolve’s position as “a partner of choice for many of the world’s fast-growing, tech-forward organizations” made the investment particularly compelling.

Jefferies advised Tessolve and its shareholders on the transaction, while Rothschild advised TPG.