Hero Electronix’s Tessolve Semiconductor Raises $75 Million Led by Vector Line Capital to Fuel Acquisitions
Tessolve Semiconductor, a Hero Electronix company, has raised $75 million in a funding round led by US-based Vector Line Capital, a strategic investment firm that invests exclusively in semiconductors and the chip supply chain. Existing investors TPG and Novo Tellus Capital Partners also continue to back the company.
Here’s what makes this round notable. The investment marks Vector Line’s first in India, which says a lot about where global semiconductor investors now see opportunity. Vector Line’s founder and CEO, Geoffrey Baldwin, spent more than three decades in technology investment banking and was among the most active M&A advisers in the global semiconductor industry before starting the firm.
The money has a clear purpose. The proceeds will support growth, including strategic acquisitions that complement Tessolve’s existing capabilities, expand its service offerings and strengthen its global presence. The company is reportedly in advanced discussions to complete multiple acquisitions over the next couple of quarters, which means more consolidation in semiconductor engineering services could be coming soon.
The scale of the business explains the investor interest. Founded in 2004 by Srini Chinamilli, Tessolve provides end-to-end semiconductor engineering services covering chip architecture, design, validation, testing and embedded systems. It employs over 3,500 engineers across 10 countries, operates nine laboratories globally, and says it works with leading hyperscalers and 18 of the world’s top 20 semiconductor companies. Its design capabilities extend across AI, high-performance computing, and analog and mixed-signal chips.
This also follows a bigger raise. In September 2025, Tessolve raised $150 million from TPG to strengthen its global delivery centres, expand advanced testing laboratories and pursue acquisitions, so the new $75 million adds to a fast-building war chest.
Tessolve’s chairman and Hero Electronix founder, Ujjwal Munjal, framed the story simply: an engineering business built from India can compete and lead globally, and is well positioned to be a key enabler of the AI ecosystem.
From a Bengaluru-built engineering firm to a global chip-services player, Tessolve’s latest round shows that India’s semiconductor story is not just about fabs, it is also about the engineering talent that designs and tests the chips.
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— Sandeep Raiza