MosChip Technologies Limited to Acquire 73 percent Stake in Vayavya Labs Private Limited for INR 245.49 Crore, Strengthening Software-Led Engineering Capabilities
April 17: MosChip Technologies Limited has announced that its Board of Directors, at a meeting held on April 16, 2026, approved a proposal to acquire a 73% controlling stake in Vayavya Labs Private Limited, subject to requisite statutory, regulatory, and other approvals. The move marks a significant step in MosChip’s strategy to scale its software-led Product Engineering Solutions business.
The acquisition of the 73% stake is valued 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 post March 31, 2028, with valuation linked to Vayavya Labs’ business performance.
Founded in 2006 and headquartered in Belagavi, Vayavya Labs Private Limited is a reputed “Silicon-to-System” engineering partner serving industries such as semiconductors, consumer electronics, automotive, electronic design automation (EDA), and communications. The company operates delivery centers in Belagavi and Bengaluru, with a strong presence across global markets including the United States, Europe, and Japan.
Post-acquisition, MosChip Technologies Limited will have a combined workforce exceeding 2,000 employees, significantly enhancing its execution capacity and ability to address large-scale, complex global engineering programs. The combined entity will operate across six strategic locations—Hyderabad, Bengaluru, Pune, Ahmedabad, Belagavi, and Silicon Valley—expanding its global delivery and engagement footprint.
Strategic and Operational Synergies
The acquisition is expected to unlock strong synergies across delivery capabilities, market positioning, and customer engagement. Vayavya Labs serves a global clientele, including eight of the top ten semiconductor companies, and brings deep expertise in embedded software, virtualization (Digital Twins), and verification and validation technologies. Its capabilities in Automotive Functional Safety, ADAS validation, and Hardware-Software Interface (HSI®) methodologies will further strengthen MosChip’s end-to-end engineering offerings.
Additionally, the acquisition presents significant cross-sell and up-sell opportunities. MosChip will be able to offer embedded and automotive software solutions to its existing clients while introducing its silicon, IP, and system design capabilities to Vayavya Labs’ customer base—enhancing wallet share and long-term revenue growth.
Strong Financial and Business Fundamentals
Vayavya Labs Private Limited has demonstrated robust financial performance, delivering a revenue CAGR of 38% over the past five years with healthy EBITDA margins. The company follows a delivery model with a strong focus on turnkey and fixed-price contracts, supporting recurring revenue streams and operational stability. Its growing forex revenue further underscores expanding opportunities in global markets.
People and Leadership Continuity
The acquisition also brings a young and skilled workforce with an average age of approximately 29 years, aligned with MosChip’s talent profile. With women comprising around 28% of the workforce, Vayavya Labs reflects a diverse and inclusive work culture. The existing promoters and leadership team will continue to manage the business in the near term, ensuring continuity, stability, and smooth integration.
Strategic Fit and Long-Term Vision
This acquisition significantly strengthens MosChip’s position in software-led engineering, enabling it to move up the value chain and expand geographically across both business development and engineering operations. It also aligns with MosChip’s long-term vision of building a scalable, differentiated, and margin-resilient Product Engineering Services platform.
The acquisition of Vayavya Labs Private Limited is expected to be value accretive, supporting top-line growth, enhancing EBITDA, and reinforcing MosChip’s competitive positioning in the global engineering services landscape.
