In a significant development in the semiconductor and engineering services space, MosChip Technologies Limited has approved the acquisition of a 73% stake in Belagavi based Vayavya Labs Private Limited for a total consideration of ₹245.49 crore, as per an exchange filing dated April 16.
The deal will be executed through a combination of ₹148.52 crore in cash and an equity swap worth ₹96.97 crore. As part of the share swap, MosChip will issue 50.5 lakh shares priced at ₹192 each to the selling shareholders. The company has also outlined plans to acquire the remaining 27% stake after March 2028, with the valuation linked to Vayavya Labs’ future performance.
Vayavya Labs holds 9 granted patents and actively drives key industry standards in the Semiconductor and Automotive verticals.
Vayavya Labs is an EBITDA-accretive business with a consistent operating track record. Over the last five years, the company has delivered a very healthy revenue growth, reflecting sustained demand across its core Automotive and Semiconductor software engineering segments. For the FY 2025-26 Vayavya’s Forex revenue outpaced the INR revenue marking a significant growth opportunity that lie ahead in Global Markets. Vayavya Labs delivery model is characterized by a significant share of turnkey and fixed-price contracts, particularly in complex and long-duration engineering programs. This approach strengthens customer retention, recurring revenue streams and sustainable operating margins.
Vayavya Labs delivery model is characterized by a significant share of turnkey and fixed-price contracts, particularly in complex and long-duration engineering programs.
Founded in 2006 and headquartered in Belagavi, Vayavya Labs has established itself as a “Silicon-to-System” engineering partner across sectors including semiconductors, automotive, consumer electronics, EDA, and communications. The company operates delivery centres in Belagavi and Bengaluru, with a global footprint spanning the US, Europe, Israel, and Japan.
Reflecting steady growth, Vayavya Labs reported a provisional turnover of ₹83 crore in FY26, up from ₹64.4 crore in FY25. Its expertise spans advanced domains such as embedded systems, virtualization, digital twin solutions, and ADAS validation.
Vayavya Labs’ workforce has an average age of approximately 29 years, broadly in line with MosChip’s workforce profile, providing a young, skilled, and future-ready talent base with strong cultural alignment. Women employees constitute approximately 28% of the workforce, reflecting a diverse and inclusive organizational culture. Vayavya Labs is led by experienced promoters and a seasoned leadership team who have successfully built and scaled the business since its inception. As part of the transaction, Majority of the promoters will continue to actively run and manage the business over the next few years, ensuring leadership continuity, preservation of historical knowledge, and reduced execution risk during integration. Engineers are hired directly from colleges in North Karnataka, South Maharashtra, Pune, Goa, and Western Coastal belt etc., supported by a structured training program aligned with MosChip’s MAST (MosChip Academy of Silicon Systems & Technologies Private Limited) initiatives.
MosChip stated that the acquisition is aimed at strengthening its software-led engineering capabilities, accelerating revenue growth, and improving EBITDA margins, while enabling it to move up the value chain in product engineering services. Post-acquisition, the combined entity is expected to have a workforce exceeding 2,000 employees, enhancing scale and execution capacity.