MosChip Technologies Limited today announced that its Board of Directors has approved a proposal to acquire a 73% controlling stake in Vayavya Labs Private Limited, subject to necessary statutory and regulatory approvals. The strategic acquisition marks a significant milestone in MosChip’s roadmap to scale its software-led Product Engineering Solutions business and expand its global engineering footprint.
Transaction Details and Structure
The proposed transaction values the 73% stake at ₹245.49 crore, with 60.50% of the consideration to be paid in cash through internal accruals and the remaining 39.50% through a share-swap arrangement. The balance 27% stake will be acquired after March 31, 2028, with valuation linked to Vayavya Labs’ business performance.
About Vayavya Labs
Founded in 2006 and headquartered in Belagavi, Vayavya Labs has established itself as a leading “Silicon-to-System” engineering partner across industries including semiconductors, consumer electronics, automotive, electronic design automation (EDA), and communications. The company operates delivery centers in Belagavi and Bengaluru and serves a global clientele, including eight of the world’s top ten semiconductor companies.
Strengthened Workforce and Scale
Following the acquisition, MosChip’s total workforce will exceed 2,000 employees, significantly enhancing its execution capabilities and enabling it to handle larger and more complex global programs.
Expanded Global Delivery Footprint
The combined entity will operate across six strategic locations—Hyderabad, Bengaluru, Pune, Ahmedabad, Belagavi, and Silicon Valley—strengthening MosChip’s ability to serve global customers and scale advanced engineering programs efficiently.
Enhanced Market Positioning
Vayavya Labs brings a strong global customer base spanning semiconductor, consumer electronics, automotive, and communications sectors, with presence in key international markets including the United States, Europe, and Japan. Its “Beyond Bengaluru” initiative, focused on delivering technology-led solutions from Tier-2 cities, aligns with MosChip’s vision for scalable and distributed innovation across India.
Advanced Engineering Capabilities
Vayavya Labs’ expertise spans embedded software and systems, virtualization (digital twins), and verification and validation technologies. The company is a pioneer in Hardware-Software Interface (HSI®) methodologies and offers solutions such as virtual ECU, ADAS validation, and automotive functional safety. These capabilities will enhance MosChip’s end-to-end engineering offerings, from silicon design to system integration.
Intellectual Property Strength
Vayavya Labs holds nine granted patents and actively contributes to key industry standards in the semiconductor and automotive sectors, strengthening the combined entity’s innovation capabilities.
Revenue Synergies and Growth Opportunities
The acquisition is expected to unlock strong cross-sell and up-sell opportunities by enabling MosChip to offer embedded and automotive software solutions to its existing clients, while introducing its silicon and system design capabilities to Vayavya Labs’ customer base. This is expected to deepen customer relationships and drive long-term revenue growth.
Strong Financial Performance
Vayavya Labs has demonstrated consistent financial growth, delivering a five-year revenue CAGR of 38% with healthy EBITDA margins. The company has also seen strong growth in international (forex) revenues, highlighting its expanding presence in global markets and long-term growth potential.
People, Culture, and Leadership Continuity
Vayavya Labs has a young and dynamic workforce with an average age of approximately 29 years and a diverse talent pool, including around 28% women employees. The company will continue to be led by its experienced promoters and leadership team, ensuring continuity and seamless integration post-acquisition.
Strategic Fit and Long-Term Vision
This acquisition significantly strengthens MosChip’s software-led engineering capabilities, supports top-line growth and EBITDA expansion, and enables the company to move up the value chain. It also enhances geographical diversification and positions MosChip to build a scalable, differentiated, and margin-resilient Product Engineering Services platform.
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