Tessolve raises $150 mn from TPG to strengthen global delivery centres

The latest funding marks the largest fundraise for a semiconductor engineering services company in India, the company said

Semiconductor engineering services company Tessolve secured $150 million in funding from global alternative asset management firm TPG, the company said in a release on Monday.

 

The company, which was acquired by Hero Electronix in 2016, claims the latest round to be the largest fundraise for a semiconductor engineering services firm in India. Tessolve's acquisition marked the Group’s foray into deep-tech.

Firm eyes expansion, acquisition

Tessolve plans to use the funds to strengthen global delivery centres, expand advanced test labs, and accelerate strategic acquisitions as it looks to consolidate the company’s position in the Indian semiconductor ecosystem. 

 

"We see an exciting opportunity for Tessolve to scale further and become a key player in the global semiconductor value chain and also play an important role in the development of the Indian semiconductor ecosystem," said Ujjwal Munjal, vice chairman, Hero Electronix and Tessolve chairman.

Tessolve previously raised $63 mn

According to data from Tracxn, Tessolve has previously raised $63 million in seven funding rounds, including one seed, one early-stage, and five late-stage rounds. The largest funding received by the company before the latest investment was a series-F round of $40 million in April 2021, led by Novo Tellus Capital Partners. The Singapore-based Novo Tellus continues to be a significant shareholder in the company.

 

TPG invested in Tessolve through TPG Growth, the firm’s middle market and growth equity platform. Jefferies acted as the advisor to the company and shareholders on this transaction, whereas Rothschild acted as the financial advisor to TPG.

Company employs over 3,000 engineers

Semiconductors have become extremely strategic to the global economy given their importance to multiple industries like data centres, auto, others and their core role in powering the artificial intelligence revolution. A partner to 18 of the world’s top 20 semiconductor firms, Tessolve employs over 3,000 engineers across offices in India, the US, UK, Germany, Singapore, and Malaysia.