Hero Electronix is reportedly planning to sell a 25-30% stake in Tessolve, aiming to raise $120-150 million. This potential deal values Tessolve at $400-450 million, with last year's revenue surpassing Rs 1,000 crore and an impressive 20% compound annual growth rate.
Hero Electronix, led by Suman Kant Munjal, is reportedly considering the sale of a 25-30% stake in its semiconductor design and engineering company, Tessolve, based in Bengaluru. This strategic move aims to raise between $120-150 million, potentially valuing Tessolve at around $400-450 million. Despite the interest in this stake sale, Tessolve’s CEO, Srini Chinamilli, has noted that the company is not looking for outside investments. Instead, he highlighted that Tessolve is financially strong and can support its plans on its own, demonstrating confidence in its operations and growth potential.
Founded in 2004, Tessolve has established itself as a key player in the global semiconductor industry by offering complete solutions that include chip design, testing, production and embedded software development. The company serves about 80% of the world’s top 20 semiconductor firms, showcasing its important role in the industry. In recent years, Tessolve has achieved an impressive annual growth rate of 20%. Last financial year, its revenue exceeded Rs 1,000 crore, marking a significant achievement for the company. Since Hero Electronix acquired Tessolve in 2016, it has grown its workforce to over 3,000 employees and set up operations in 10 countries, including major markets like the United States, United Kingdom, Japan and Singapore.
Looking forward, Tessolve plans to enhance its capabilities and expand its market presence with a possible acquisition in Europe, which is expected to be announced soon. The company has a track record of making strategic purchases, including the recent acquisition of Bengaluru-based Pico2Femto Semiconductor in 2022, which added valuable design solutions to its offerings. Tessolve’s growth efforts align with the Indian government’s Semiconductor Mission, which aims to increase domestic semiconductor production and attract global investments, positioning the company well for future success in a rapidly changing industry.
