Indian semiconductor firm Tessolve secures $150m investment from TPG Growth to boost global presence and expand capabilities.

Tessolve, an Indian semiconductor engineering services company, has secured a $150m investment from TPG Growth. The funds will be used to expand its global delivery centers, advanced test laboratories, and accelerate acquisitions. Tessolve currently collaborates with 18 of the world's top 20 semiconductor companies and employs over 3,000 engineers. The investment will also support the company's next phase of organic and inorganic growth, strengthening its R&D efforts.

Semiconductor engineering services company Tessolve has announced the closure of a $150 million funding round led by TPG Growth, the middle market and growth equity platform of global alternative asset management firm TPG. The investment will be utilized to bolster Tessolve's global delivery centers, expand advanced test labs, and accelerate strategic acquisitions, positioning the company as a key player in the global semiconductor value chain and the Indian semiconductor ecosystem [1].

Tessolve, founded in 2004 and based in Bengaluru, has built deep capabilities throughout the semiconductor engineering value chain, from chip architecture to design, test development, and embedded systems. The company currently collaborates with 18 of the world's top 20 semiconductor firms and employs over 3,000 engineers across offices in India, the US, UK, Germany, Singapore, and Malaysia [2].

The latest funding round, the largest for a semiconductor engineering services company in India, will support Tessolve's next phase of organic and inorganic growth. The funds will also strengthen the company's R&D efforts, enabling it to reach new heights and solidify its position as a key enabler of the global and Indian semiconductor ecosystems [1].

The investment comes at a critical time for Tessolve, which has previously raised $63 million across seven funding rounds. The largest funding received before the latest investment was a series-F round of $40 million in April 2021, led by Novo Tellus Capital Partners [1].

Ujjwal Munjal, vice-chairman of Hero Electronix and Tessolve's chairman, commented on the investment, stating, "This investment is a significant milestone for Tessolve and a testament to Hero Electronix’s vision to build leading technology ventures of global scale from India" [2].

TPG invested through TPG Growth, with Jefferies acting as the advisor to the company and shareholders, and Rothschild acting as the financial advisor to TPG. The exact stake TPG received in exchange for the investment is not immediately clear [2].

References:
[1] https://www.business-standard.com/companies/news/tessolve-raises-150-million-tpg-semiconductor-expansion-india-125090100424_1.html
[2] https://www.business-standard.com/companies/news/tessolve-raises-150-million-from-tpg-to-expand-semiconductor-services-125090100813_1.html