Tessolve raises $40 million in funding from Novo Tellus

Hero Electronix-owned end-to-end semiconductor engineering and testing service supplier Tessolve has raised $40 million in funding from Singapore-based non-public fairness agency Novo Tellus at a valuation of $100 million, because it appears to be like to construct chops in semiconductor design to feed a rising demand for customized silicon globally.

Tessolve plans to utilise the capital to beef up its semiconductor design and engineering capabilities inorganically via acquisitions within the US Bay space, whereas additionally increasing its geographical presence. It stated it’s going to additionally put money into creating IP for its check engineering enterprise, which at the moment drives over 80% of the corporate’s revenues.

“Being in India our mindset is in the direction of rising in companies. However the way in which the semiconductor trade is evolving, from just a few massive gamers now even unrelated firms like GoPro, Fb and Google need to construct their very own chips,” stated Ujjwal Munjal, founder director at Hero Electronix. “We wished somebody to return assist stroll us via this journey.”

Hero Electronix acquired a majority stake in Tessolve in 2016 and has been in a position to diversify the enterprise from simply semiconductor check engineering. It stated it has been in a position to develop the corporate’s revenues by over 3 times on this interval to $75 million in 2020, however nonetheless largely pushed by its testing companies.

Nikhil Rajpal, CEO of Hero Electronix, stated that Tessolve has the aptitude to develop by an extra 3X within the subsequent 4-5 12 months by making the proper investments in natural and inorganic progress. He added that Novo Tellus’ funding, which specialises in backing semiconductor firms, will additional help partnerships to assist the corporate develop.

“Having made a number of investments within the semiconductor house via the years, it’s clear to us that Tessolve’s distinctive worth proposition to its world clients places it in an incredible place to profit from the secular progress developments in semiconductors,” stated Wai San Loke, co-founder and managing accomplice at Novo Tellus Capital Companions.

Novotellus stated that it already works with eight of the ten largest semiconductor corporations globally, and whereas additionally it is trying to faucet know-how firms trying to design their very own chips, it’s going to proceed to work with semiconductor corporations to permit them to convey merchandise to market quicker and extra value effectively.

Round 85-90% of its revenues are pushed by working with semiconductor firms and it doesn’t count on this to alter considerably sooner or later.

The corporate has just a few early tasks within the end-to-end semiconductor engineering companies house, and has already scored a buyer for whom it has designed a chip from scratch and can even work with the producer to ship the tip product. Novotellus, nonetheless, declined from naming the shoppers it really works with.

“As all the things will get digitised, folks need very software particular semiconductors which have higher efficiency, decrease energy consumption and a chip that doesn’t have further functionalities. For producers, this implies much more complexity, however for us, it means there’s much more engineering {dollars} being spent,” added Munjal.