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Tessolve, a Hero Electronix venture, on Thursday announced that it has raised $40 million from Singapore-based Novo Tellus Capital Partners, valuing the engineering and R&D services provider at $100 million.

According to the official statement, the funding will be used by Tessolve to drive further growth through acquisitions and organic investments. 

Talking about this key development, Ujjwal Munjal, Founder Director, Hero Electronix, said,

“We are delighted to welcome Novo Tellus as a key partner in the journey to build Tessolve into the largest global provider of semiconductor engineering services. Their sector expertise and experience building technology leaders should be a great asset to Tessolve.”

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.

Wai San Loke, Co-founder and Managing Partner, Novo Tellus Capital Partners, said, 

“We are excited to be an equity partner to Hero Electronix in working with the Tessolve management team to further scale the company. Having made multiple investments in the semiconductor space through the years, it is clear to us that Tessolve’s unique value proposition to its global customers puts it in a great position to benefit from the secular growth trends in semiconductors.”

Despite the Covid pandemic, the semiconductor industry claims to have witnessed strong resilience growing 5.4 percent to $442 billion in 2020.

Commenting on the investment, Nikhil Rajpal, CEO, Hero Electronix said

“Tessolve has the potential and opportunity to grow into 3X its current size in the next 4-5 years. This capital infusion will provide us with the firepower to make the right organic and inorganic investments to drive towards that goal.”

Further adding, Srinivas Chinamilli, CEO, Tessolve stated,

“This investment is a validation of the hard work done by Tessolvians in building the company into a global leader in semiconductor engineering. Our vision is to partner with our customer from concept to silicon and this investment will help us to get to that vision faster.”

In March last year, Tessolve had acquired UK-based chip design services provider Test & Verification Solutions (T&VS) for an undisclosed amount.

It had also acquired TES DST in 2016, Spectrum Integrated and Test lab business of Lynxemi Pte in 2017, and Analog design business of Analog Semiconductors in 2017.