Hero Electronix-owned Tessolve Semiconductor raised $75 Mn (₹718 Cr) in a funding round led by Vector Line Capital, with additional participation from existing backers TPG and Novo Tellus Capital Partners.
The fresh capital will support acquisitions that complement its existing capabilities, broaden its service offerings and strengthen its international business.
The company is already in advanced discussions to close multiple acquisitions over the next couple of quarters. It last acquired Germany’s Dream Chip Technologies GmbH (DCT) in a ₹400 Cr deal back in November 2024.
“This investment will support acquisitions that further strengthen our offerings, and Vector Line’s focus on the sector and their relationships will add significant value,” Tessolve cofounder and chief executive Srini Chinamilli said.
Founded in 2004 by Chinamilli, P Raja Manickam and Veerappan V, Tessolve provides end-to-end semiconductor engineering services, spanning chip architecture and design, validation, testing and embedded systems.
The company is designing AI and HPC chips by leveraging its in-house pre-engineered semiconductor platforms and design flows to shorten development cycles, alongside a global lab infrastructure and partnerships with leading foundries, IP, EDA and test equipment companies.
Tessolve claims to have worked with leading hyperscalers and 18 of the world’s top 20 semiconductor companies.
Hero Electronix, the electronics and tech arm of Hero Group, acquired a controlling stake in the semiconductor company in 2016, with plans to complete a phased acquisition of a significant majority holding by the end of that year.
“Two decades ago we started with silicon test engineering. Today we are designing and productising complete chips for the companies building AI infrastructure,” Chinamilli said.
Tessolve last raised $150 Mn in a fresh round in 2025, led by TPG Growth. With the latest infusion, the startup’s cumulative funding stands at $265 Mn.
The development comes amid broader momentum in India’s deeptech sector, where semiconductor and chip design startups have drawn rising investor interest.
This increasing investor interest is also supported by the government’s ₹1.25 Lakh Cr India Semiconductor Mission 2.0, which was launched with an aim to build the country’s chip design and manufacturing ecosystem.
Some examples of this include AI-native semiconductor verification startup VerifAIX’s $5 Mn seed funding round in September, HrdWyr $13 Mn Series A funding round, among others.
Broader investor interest for advanced hardware and tech startups in India, which includes robotics, semiconductors and aerial vehicles, rose 176% YoY to $290 Mn, as per Inc42’s Indian Tech Startup Funding Report Q3 2026.
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