Tessolve Semiconductor Raises $75 Million in Funding Led by Vector Line Capital
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Khushi Jain
- October 12, 2026
Hero Electronix-owned Tessolve Semiconductor has raised $75 million (Rs 718 crore) in a funding round led by Vector Line Capital, with additional participation from existing investors TPG and Novo Tellus Capital Partners.
The fresh capital will support acquisitions that complement Tessolve’s existing capabilities, expand its service offerings and strengthen its international business.
The company is already in advanced discussions to close multiple acquisitions over the next couple of quarters. Its most recent acquisition was Germany-based Dream Chip Technologies GmbH (DCT), which it acquired in a Rs 400 crore deal in November 2024.
“This investment will support acquisitions that further strengthen our offerings, and Vector Line’s focus on the sector and their relationships will add significant value,” Tessolve cofounder and chief executive Srini Chinamilli said.
Tessolve Expands Semiconductor Engineering Capabilities
Founded in 2004 by Chinamilli, P Raja Manickam and Veerappan V, Tessolve provides end-to-end semiconductor engineering services spanning chip architecture and design, validation, testing and embedded systems.
The company is designing AI and high-performance computing (HPC) chips using its in-house pre-engineered semiconductor platforms and design flows to shorten development cycles. Its capabilities are supported by a global laboratory infrastructure and partnerships with leading foundries, intellectual property (IP), electronic design automation (EDA) and test equipment companies.
Tessolve claims to have worked with leading hyperscalers and 18 of the world’s top 20 semiconductor companies.
Hero Electronix, the electronics and technology arm of the Hero Group, acquired a controlling stake in Tessolve in 2016. At the time, it planned to complete a phased acquisition of a significant majority holding by the end of that year.
“Two decades ago we started with silicon test engineering. Today we are designing and productising complete chips for the companies building AI infrastructure,” Chinamilli said.
Tessolve’s Funding History
Tessolve last raised $150 million in a fresh funding round in 2025, led by TPG Growth. With the latest investment, the company’s cumulative funding has reached $265 million.
The latest funding comes amid growing investor interest in India’s deeptech sector, particularly semiconductor and chip design startups.
The government’s Rs 1.25 lakh crore India Semiconductor Mission 2.0 is also supporting efforts to build the country’s chip design and manufacturing ecosystem.
Recent funding activity in the sector includes AI-native semiconductor verification startup VerifAIX, which raised $5 million in a seed funding round in September, and HrdWyr, which raised $13 million in a Series A round to build AI-native chips.
According to Inc42’s Indian Tech Startup Funding Report Q3 2026, investor interest in advanced hardware and technology startups in India, including robotics, semiconductors and aerial vehicles, rose 176% year-on-year to $290 million.
FAQs
1. How much funding has Tessolve Semiconductor raised?
Tessolve Semiconductor has raised $75 million (Rs 718 crore) in a funding round led by Vector Line Capital.
2. Who participated in Tessolve’s latest funding round?
The round was led by Vector Line Capital, with additional participation from existing investors TPG and Novo Tellus Capital Partners.
3. How will Tessolve use the fresh funding?
The company plans to use the capital to pursue acquisitions, broaden its service offerings and strengthen its international business.
4. What does Tessolve Semiconductor do?
Founded in 2004, Tessolve provides semiconductor engineering services covering chip architecture and design, validation, testing and embedded systems.
5. How much funding has Tessolve raised cumulatively?
Following the latest investment, Tessolve’s cumulative funding stands at $265 million.
