Tessolve Semiconductor Funding: Raises $75 Mn From Vector Line Capital
With the latest funding, Tessolve Semiconductor plans to continue expanding its technical capabilities through acquisitions and build its global engineering operations.
Semiconductor engineering company Tessolve Semiconductor has secured $75 million funding from US-based strategic investment firm Vector Line Capital.
The Bengaluru-based company, backed by Hero Electronix, will use the capital to strengthen its engineering capabilities, expand its global presence and pursue strategic acquisitions.
The funding will support Tessolve’s growth strategy, including acquisitions that complement its existing capabilities, broaden its service offerings and extend its geographical reach.
The company said it is already in advanced discussions to close multiple acquisitions over the next two quarters. Tessolve had also recently disclosed that it was in talks to acquire two companies, one in the US and another in India.
Founded in 2004 by Srini Chinamilli, Tessolve provides end-to-end engineering services across the semiconductor development lifecycle, covering chip architecture and design through validation, testing and embedded systems. The company works with semiconductor companies, hyperscalers, chip startups and system manufacturers across areas including artificial intelligence, high-performance computing, automotive, data centres and industrial applications.
Tessolve employs more than 3,500 engineers across 10 countries and operates nine laboratories globally, according to the latest company disclosure. Its ecosystem includes partnerships with semiconductor foundries, intellectual property providers, electronic design automation companies and test equipment manufacturers.
The company said it works with 18 of the world’s top 20 semiconductor companies. Its capabilities include the development of AI and HPC chips as well as analog and mixed-signal semiconductors. Tessolve also works with chip startups and emerging foundries and OSATs in India, providing engineering support across the semiconductor value chain.
Vector Line Capital, which focuses exclusively on semiconductors and the chip supply chain, is making its first investment in India through Tessolve. The firm joins existing investors TPG and Singapore-based Novo Tellus Capital Partners.
The latest funding comes about a year after Tessolve raised $150 million from TPG in September 2025. Novo Tellus had previously invested $40 million in the company in 2021. In November 2024, Tessolve also acquired Germany-based chip design company Dream Chip Technologies for around ₹400 crore to strengthen its semiconductor design capabilities.
Tessolve’s business has also expanded significantly in the past year. Its revenue increased to ₹1,526 crore in FY26 from ₹1,157 crore in FY25, according to the company. It expects revenue to exceed ₹2,000 crore in the current financial year and has set a longer-term target of crossing $500 million in annual revenue within three to four years.
The company has been expanding beyond its origins in semiconductor testing into a broader engineering-services business covering chip design, validation, testing and embedded systems. Tessolve’s CEO Srini Chinamilli said the company has moved from silicon test engineering to designing and productising complete chips for companies building AI infrastructure.