Hero Electronix, led by Suman Kant Munjal, is reportedly exploring the sale of a 25-30% stake in Tessolve, its semiconductor design and engineering firm based in Bengaluru. This move seeks to raise between $120-150 million, with Tessolve potentially valued at $400-450 million. However, Tessolve's CEO, Srini Chinamilli, has emphasized that the company isn't seeking external investments. He pointed out Tessolve's strong financial position and its ability to fund its growth plans independently, signaling confidence in its future.
Founded in 2004, Tessolve has become a prominent player in the global semiconductor industry, offering comprehensive services including chip design, testing, production, and embedded software development. The company serves around 80% of the world’s top 20 semiconductor companies, underscoring its industry significance. Tessolve has maintained a steady annual growth rate of 20% in recent years and exceeded Rs 1,000 crore in revenue last financial year. Since Hero Electronix acquired the company in 2016, Tessolve’s workforce has expanded to over 3,000 employees across 10 countries, including major markets like the US, UK, Japan, and Singapore.
Looking ahead, Tessolve is focusing on further expanding its market presence, including a potential acquisition in Europe, which is expected to be announced shortly. The company has a history of strategic acquisitions, such as the 2022 purchase of Bengaluru-based Pico2Femto Semiconductor, which enhanced its design capabilities. Tessolve’s growth strategy aligns with India’s Semiconductor Mission, which aims to boost domestic semiconductor production and attract global investments, positioning Tessolve for continued success in the evolving semiconductor industry.