Bangalore based Tessolve raises $40 million in funding from Novo Tellus
Bangalore based Hero Electronix owned Tessolve, provider of Semiconductor Engineering and Turnkey Solutions has raised $40 million in funding from Singapore-based private equity firm Novo Tellus at a valuation of $100 million, as it looks to build chops in semiconductor design to feed a growing demand for custom silicon globally.
Tessolve is an end-to-end solution provider, offering everything from chip design to test engineering and PCB design to embedded device production. Tessolve's deep domain expertise in Analog, Digital, Mixed Signal, and RF, as well as strong ATE platform experience and built-in infrastructures such as a test floor and characterization, reliability lab, and PCB FAB, allow customers to achieve a faster time-to-market.
Tessolve enables consumers to take advantage of high-end tech in a cost-effective manner by scaling teams to meet specific customer requirements. Tessolve's approach makes the transition from conception to production and beyond seamless.
The company intends to use the funds to extend its geographical footprint while also ramping up its semiconductor design and engineering capabilities inorganically through acquisitions in the US Bay area. It also stated that it will invest in developing IP for its test engineering market, which currently accounts for over 80% of the company's revenue.
“Being in India our mindset is towards growing in services. But the way the semiconductor industry is evolving, from a few large players now even unrelated companies like GoPro, Facebook, and Google want to build their own chips,” said Ujjwal Munjal, founder-director at Hero Electronix. “We wanted someone to come & help walk us through this journey.”
Tessolve was purchased by Hero Electronix in 2016 for a majority stake, and the company has been able to diversify its market beyond semiconductor test engineering. It claims it has been able to triple the company's revenue in this time frame, to $75 million in 2020, but is still largely driven by its testing services.
According to Nikhil Rajpal, CEO of Hero Electronix, Tessolve has the potential to expand by 3X in the next 4-5 years by making the right investments in organic and inorganic development. He went on to say that Novo Tellus' funding, which specialises in backing semiconductor companies, would help the business expand even further through partnerships.
“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,” said Wai San Loke, co-founder and managing partner at Novo Tellus Capital Partners.
Novo Tellus claims to partner with eight of the top ten semiconductor companies in the world, and although it is now looking to work with electronics companies who want to develop their own chips, it will continue to work with semiconductor companies to help them bring products to market quicker and more cost-effectively.
Working with semiconductor companies accounts for 85-90 percent of its sales, and it does not expect this to change substantially in the future.
The company is working on a few early projects in the end-to-end semiconductor engineering services space, and it has already landed a customer for whom it has engineered a chip from the ground up and will even collaborate with the manufacturer to produce the finished product. Novo Tellus, on the other hand, refused to name the clients for whom it deals.
“As everything gets digitised, people want very application-specific semiconductors that have better performance, lower power consumption, and a chip that does not have additional functionalities. For manufacturers, this means a lot more complexity, but for us, it means there are a lot more engineering dollars being spent,” added Munjal.
Tessolve offers a unique engineering model where it bridges the gap between pre and post-silicon development and final system integration. The company provides individual services like DFT or turnkey chip implementation. It also provides services to an impressive group of global companies such as Qualcomm, Broadcom, and NXP, which can attest to the quality of Tessolve’s work. Tessolve has engineering teams in India, Singapore, China, Malaysia, and across Europe and North America.
Tessolve is an end-to-end solution provider, offering everything from chip design to test engineering and PCB design to embedded device production. Tessolve's deep domain expertise in Analog, Digital, Mixed Signal, and RF, as well as strong ATE platform experience and built-in infrastructures such as a test floor and characterization, reliability lab, and PCB FAB, allow customers to achieve a faster time-to-market.
Tessolve enables consumers to take advantage of high-end tech in a cost-effective manner by scaling teams to meet specific customer requirements. Tessolve's approach makes the transition from conception to production and beyond seamless.
The company intends to use the funds to extend its geographical footprint while also ramping up its semiconductor design and engineering capabilities inorganically through acquisitions in the US Bay area. It also stated that it will invest in developing IP for its test engineering market, which currently accounts for over 80% of the company's revenue.
“Being in India our mindset is towards growing in services. But the way the semiconductor industry is evolving, from a few large players now even unrelated companies like GoPro, Facebook, and Google want to build their own chips,” said Ujjwal Munjal, founder-director at Hero Electronix. “We wanted someone to come & help walk us through this journey.”
Tessolve was purchased by Hero Electronix in 2016 for a majority stake, and the company has been able to diversify its market beyond semiconductor test engineering. It claims it has been able to triple the company's revenue in this time frame, to $75 million in 2020, but is still largely driven by its testing services.
According to Nikhil Rajpal, CEO of Hero Electronix, Tessolve has the potential to expand by 3X in the next 4-5 years by making the right investments in organic and inorganic development. He went on to say that Novo Tellus' funding, which specialises in backing semiconductor companies, would help the business expand even further through partnerships.
“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,” said Wai San Loke, co-founder and managing partner at Novo Tellus Capital Partners.
Novo Tellus claims to partner with eight of the top ten semiconductor companies in the world, and although it is now looking to work with electronics companies who want to develop their own chips, it will continue to work with semiconductor companies to help them bring products to market quicker and more cost-effectively.
Working with semiconductor companies accounts for 85-90 percent of its sales, and it does not expect this to change substantially in the future.
The company is working on a few early projects in the end-to-end semiconductor engineering services space, and it has already landed a customer for whom it has engineered a chip from the ground up and will even collaborate with the manufacturer to produce the finished product. Novo Tellus, on the other hand, refused to name the clients for whom it deals.
“As everything gets digitised, people want very application-specific semiconductors that have better performance, lower power consumption, and a chip that does not have additional functionalities. For manufacturers, this means a lot more complexity, but for us, it means there are a lot more engineering dollars being spent,” added Munjal.
Tessolve offers a unique engineering model where it bridges the gap between pre and post-silicon development and final system integration. The company provides individual services like DFT or turnkey chip implementation. It also provides services to an impressive group of global companies such as Qualcomm, Broadcom, and NXP, which can attest to the quality of Tessolve’s work. Tessolve has engineering teams in India, Singapore, China, Malaysia, and across Europe and North America.
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