Tessolve – a Hero Electronix venture – on Thursday said it has raised $40 mn (about Rs 301 crore) from Singapore-based Novo Tellus Capital Partners, valuing the engineering and R&D services provider at $100 mn.

Representative image.

New Delhi:

The funding will be used by Tessolve – which aims to reach the $250 million revenue milestone in the next five years – to drive further growth through acquisitions and organic investments.

“Since a majority investment by Hero Electronix in 2016, Tessolve has witnessed a year-on-year growth rate of over 30 per cent, clocking $75 million in revenues in 2020.

“We have transitioned from a semiconductor test services provider to a provider of complete engineering solutions to semiconductor companies,” Hero Electronix CEO Nikhil Rajpal said.

Tessolve’s offerings range from designing and testing chips and product engineering to designing electronic products. It has expanded into an over 2,000-employee strong organisation with offices across the US, India, Singapore, Malaysia, Europe, the UK and Taiwan.

Ujjwal Munjal, Founder-Director of Hero Electronix, said Novo Tellus’ sector expertise and experience building technology leaders will be a great asset to Tessolve.

Despite the COVID-19 pandemic, the semiconductor industry has exhibited strong resilience, growing 5.4 per cent to $442 billion in 2020.

With work and study from home, coupled with emergence of billions of smart and connected devices (like autonomous vehicles) driving strong demand, the semiconductor industry is poised for a phase of rapid growth.

Given this surge in demand, semiconductor firms are increasing their engineering investments to develop new technologies and rapidly launch more products, a development to benefit Tessolve.Tessolve is uniquely positioned to capitalise on this opportunity.