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.
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.
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.