Tessolve raises $75M from US-based Vector Line Capital to fund chip acquisitions

Semiconductor engineering services firm Tessolve has raised $75 million (about ₹725 crore) from US-based Vector Line Capital, a strategic investment company that invests exclusively in semiconductors and the chip supply chain. The deal was announced on October 11, 2026, PTI reported.

Tessolve, a Hero Electronix venture founded in 2004, said the capital will fund strategic acquisitions that extend its capabilities, service offerings and global footprint. The company is already in advanced discussions to close multiple acquisitions over the next couple of quarters.

Vector Line joins existing backers TPG and Novo Tellus as Tessolve's third institutional investor. The investment is Vector Line's first in India. The firm manages more than $1.6 billion and was founded by Geoffrey Baldwin, a veteran of Morgan Stanley's technology M&A practice and GCA Advisors.

Tessolve offers turnkey chip solutions from architecture and design through validation, test and embedded systems. It employs over 3,500 engineers across 10 countries with 9 laboratories globally, and counts 18 of the world's top 20 semiconductor companies as customers.

The company's momentum is visible in its numbers: revenue rose to ₹1,526 crore in FY26 from ₹1,157 crore in FY25, and Tessolve expects to exceed ₹2,000 crore in the current financial year. In November 2024 it acquired Germany-based chip design firm Dream Chip Technologies for ₹400 crore, and it aims to cross annual revenue of about ₹4,700 crore within three to four years.