MosChip Technologies Limited has announced its proposal to acquire a 73% controlling stake in Vayavya Labs Private Limited, following approval by its Board of Directors. The transaction is subject to statutory and regulatory approvals. The acquisition marks a significant step in MosChip’s strategy to scale its software-led product engineering solutions business.
MosChip Technologies Limited will acquire a 73% stake in Vayavya Labs Private Limited for a total consideration of ₹245.49 crore. The transaction will be structured with 60.50% of the payment made through internal accruals in cash and the remaining 39.50% through a share swap arrangement.
The balance 27% stake will be acquired after March 31, 2028, with the valuation linked to Vayavya Labs’ future business performance. This phased acquisition approach aligns long-term value creation with performance milestones.
Founded in 2006 and headquartered in Belagavi, Vayavya Labs is a “Silicon-to-System” engineering partner serving industries including semiconductors, automotive, consumer electronics, EDA, and communications. The company operates delivery centers in Belagavi and Bengaluru and maintains a strong global presence across the United States, Europe, Israel, and Japan.
Following the acquisition, MosChip’s workforce will exceed 2,000 employees, strengthening its scale and execution capabilities. The transaction is expected to unlock strategic synergies, including an expanded delivery footprint across Ahmedabad, Belagavi, Bengaluru, Hyderabad, Pune, and Silicon Valley, enhanced positioning in global semiconductor and automotive markets, and acceleration of MosChip’s “Beyond Tier-1 Cities” initiative.
Vayavya Labs brings deep expertise in embedded software, digital twin technologies, virtualization, and system validation. It is also recognized for its Hardware-Software Interface (HSI®) methodologies and capabilities in ADAS validation and automotive functional safety.
The company holds nine granted patents and plays an active role in shaping industry standards in semiconductor and automotive domains.
The acquisition is expected to create strong cross-sell and up-sell opportunities by integrating MosChip’s silicon and system design capabilities with Vayavya Labs’ software and validation expertise. This will enhance customer engagement, increase wallet share, and support long-term revenue growth.
Vayavya Labs has demonstrated consistent revenue growth and operates an EBITDA-accretive business model, with increasing contribution from global markets. The company’s workforce, with an average age of approximately 29 years and 28% women employees, reflects a young, diverse, and future-ready talent base. Its leadership team will continue to manage operations post-acquisition, ensuring continuity and smooth integration.
This strategic move positions MosChip to deliver comprehensive end-to-end engineering solutions spanning silicon, embedded systems, and platform integration, while strengthening its presence in global markets. MosChip Technologies is a long-standing partner to global enterprises and technology innovators, offering silicon and product engineering services backed by more than 25 years of experience. Its capabilities span chip design, hardware engineering, embedded software, cloud computing, and AI-led solutions, enabling customers to build next-generation intelligent products across industries.
