Tessolve Semiconductor, a chip-engineering services firm owned by Hero Electronix, has raised $75 million (about ₹718 crore) from US-based Vector Line Capital, the company said on Sunday. The investment comes about 13 months after TPG invested $150 million into the business.
This is the US semiconductor-focussed investor's maiden India investment.
Tessolve said it will use the money for acquisitions that add capabilities, widen its services and extend its global presence. It said it is in advanced discussions to close multiple deals over the next couple of quarters, but did not name targets.
The statement did not disclose the stake Vector Line will hold; the valuation; or whether the money is new capital for the company, a purchase of existing shares or a mix of both.
First India investment
Vector Line, which invests only in semiconductors and the chip-supply chain, is making its first investment in India. It joins TPG and Singapore-based Novo Tellus Capital Partners as an investor in Tessolve.
The firm was founded by Geoffrey Baldwin, a former co-chairman of Houlihan Lokey's global technology group who co-founded investment bank GCA Advisors, which Houlihan later acquired.
Vector Line says it manages more than $1.6 billion.
"This investment will support acquisitions that further strengthen our offerings," Tessolve co-founder and CEO Srini Chinamilli said. Baldwin said chips are becoming harder to design, validate and test, and that customers increasingly look to partners that can handle the whole development cycle.
End-to-end chipmaker
Tessolve, founded in 2004, offers chip design, validation, testing and embedded systems services. It says it counts 18 of the world's top 20 semiconductor companies as customers and employs more than 3,500 engineers across 10 countries.
It also says it works with the new foundries, chip-packaging and testing units, and start-ups coming up in India.
Hero Electronix, the Hero Group's technology investment platform, made a majority investment in Tessolve in 2016. It reportedly held 58% ahead of the TPG deal.
Tessolve's revenue rose to ₹1,526 crore in FY26 from ₹1,157 crore a year earlier, about 32%.
In September, Chinamilli said the company expects to exceed ₹2,000 crore in FY27 and is targeting over $500 million (about ₹4,835 crore) within three to four years. He reportedly called an initial public offering (IPO) "definitely one possibility" but said formal preparations had not begun.
The TPG investment was announced on September 1, 2025. The deal reportedly valued Tessolve at $475–500 million and included partial exits by Novo Tellus and seed investors. The company has not confirmed the valuation. Novo Tellus had invested $40 million in 2021 at a reported $100 million valuation.
The funding comes as New Delhi widens its semiconductor push beyond fabs. In July, the Union Cabinet approved the second phase of the India Semiconductor Mission with a ₹1.27 lakh crore outlay, with chip design among its six focus areas.
