Semiconductor engineering services company Tessolve has raised USD 75 million in a new funding round led by Vector Line Capital, a United States based investment firm that backs semiconductor and chip supply chain businesses. Tessolve, a Hero Electronix venture, put the deal at about Rs 725 crore.
The company announced the fundraise on October 11, 2026, and said the money will support acquisitions that add to its existing capabilities, expand its services and strengthen its global presence. Vector Line Capital joins existing investors TPG and Novo Tellus in the company.
The funding round, the investor and the terms
Vector Line Capital led the USD 75 million round and describes itself as a strategic investor focused only on semiconductors and the chip supply chain. Tessolve said this is Vector Line’s first investment in India. The company did not disclose the valuation at which the round closed, the equity stake the investor received, or the split between primary and secondary shares. Geoffrey Baldwin, founder and chief executive of Vector Line Capital, said semiconductors are becoming increasingly complex to design, validate and test, and that large technology companies are turning to engineering partners who can carry work across the whole development cycle.
How Tessolve plans to use the funds
The proceeds are earmarked for strategic acquisitions that complement what Tessolve already does rather than duplicate it. The company said it wants to widen its service offerings and deepen its footprint in overseas markets. Tessolve added that it is in advanced talks to close multiple acquisitions over the next couple of quarters, though it has not named any target or a date for a specific deal.
Read more: India’s chip services and design market keeps drawing fresh capital. Sequoia-Backed Chip Startup Nuvacore Raising Funds at About 2.5 Billion Dollar Valuation takes a close look at another semiconductor bet in the current funding cycle.
What Tessolve does
Founded in 2004, Tessolve offers turnkey silicon solutions that run from chip architecture and design through validation, testing and embedded systems. Its work covers artificial intelligence, high performance computing, and analog and mixed-signal chips. The company serves semiconductor firms, hyperscalers, chip startups and system companies across AI, high performance computing, automotive, data centre and industrial applications. Tessolve says it works with 18 of the world’s 20 largest semiconductor companies.
Financials, valuation and existing backing
Tessolve has not shared revenue or profit figures for the latest round, and the valuation remains undisclosed. Its investor base now includes Vector Line Capital alongside TPG and Novo Tellus. According to The Hindu BusinessLine, TPG’s investment in September 2025 was billed as the largest fundraise by a semiconductor engineering services company in India, while Singapore based Novo Tellus invested in the company in 2021. Tessolve also partners with foundries, intellectual property providers, electronic design automation firms and test equipment makers.
Founders and background
Srini Chinamilli is co-founder and chief executive of Tessolve. He said the company started with silicon test engineering two decades ago and now designs and productises complete chips for firms building AI infrastructure. He added that the shift took sustained investment in capabilities, platforms and talent well before demand arrived, and that the new round will support acquisitions. Tessolve employs more than 3,500 engineers across 10 countries and runs nine laboratories globally.
What happens next
The immediate test for the new capital is whether Tessolve can turn acquisitions into fresh revenue. Demand from AI and data centre spending has pulled semiconductor design and validation work forward, and the company’s customer list sits directly in that flow. With a strategic investor now on board and talks for more deals under way, Tessolve is betting that scale across the chip development cycle will decide who wins the next round of contracts.
