Tessolve targets $500M revenue with two new acquisitions

Tessolve's $500 million revenue target and acquisition pipeline

Semiconductor engineering services firm Tessolve, a Hero Electronix venture, is in active negotiations to acquire two companies — one based in the US and another in India — as it works toward surpassing USD 500 million (about Rs 4,700 crore) in annual revenue within the next three to four years. Co-founder and Chief Executive Officer Srini Chinamilli told PTI in an interview that "We are in active talks with some companies we have not yet announced... We are talking to one company in the US, and there is one local (Indian) company as well," without naming the targets. One deal is expected to close in the next couple of months, with the other likely completed by the end of the current fiscal year. The company had earlier set a Rs 2,000 crore revenue goal for the current financial year (FY27) and said it remained on track to exceed that figure.

Capability-led M&A and the Dream Chip precedent

Chinamilli stressed that Tessolve's acquisitions are aimed at adding engineering capabilities and geographic presence the company does not already have, rather than purely chasing top-line growth. The most recent deal — a 100 per cent stake in Germany-based chip design firm Dream Chip Technologies, acquired in November 2024 for Rs 400 crore — has "more than doubled" Tessolve's revenue since the purchase, according to Chinamilli. That experience is shaping the rationale for the two new pursuits, both of which are positioned as capability-adding bolt-ons aligned with the firm's stated goal of becoming the "number one semiconductor engineering solutions company in the world."

AI and data centers reshape Tessolve's revenue mix

Artificial intelligence chips and data center work now account for at least 25 per cent of Tessolve's revenue, a share Chinamilli highlighted as evidence of the company's alignment with high-growth semiconductor end markets. Tessolve's overall revenue rose to Rs 1,526 crore in the financial year ended March 2026 (FY26), up from Rs 1,157 crore in FY25, providing the base from which management is projecting a further step-up toward the USD 500 million mark.

IPO under evaluation as scale expands

Tessolve is also weighing a potential initial public offering, though Chinamilli said formal preparations have not yet begun. The consideration comes alongside the acquisition push and the multi-hundred-million-dollar revenue aspiration, signaling that management sees public-market access as a possible future lever once the current inorganic growth phase matures.

Other developments

Separately, Tata Electronics Chief Executive and Managing Director Randhir Thakur outlined a vision for the company to reach USD 30 billion in revenue by leveraging India's semiconductor push, including establishing the country's first major commercial fab and expanding assembly and testing operations to anchor a global electronics supply chain.

Looking ahead, one of Tessolve's pending acquisitions is expected to close within a couple of months, with the second targeted for completion by the end of the current fiscal year, while the company continues to evaluate the timing of a potential IPO.