MosChip Technologies Limited has, pursuant to the approval of its Board of Directors at the meeting held on 16 April 2026, proposed to acquire a 73% controlling stake in Vayavya Labs Private Limited (“Vayavya Labs”), subject to receipt of all requisite statutory, regulatory and other approvals, marking a significant step in MosChip’s strategy to scale its software‑led Product Engineering Solutions business.
73% of shareholding is being acquired at a consideration of Rs 245.49 crores for which the payment structure is as follows:
- 60.50% to be paid through cash generated through internal accruals.
- 39.50% to be paid through share‑swap.
The remaining shareholding (27%) will be acquired after 31 March 2028, and the valuation will be linked to Vayavya Labs’ business performance.
Vayavya Labs was incorporated in 2006 and headquartered at Belgavi, has built a strong reputation as a high‑quality “Silicon-to-System” engineering partner across industries such as semiconductors, Consumer Electronics (CE), Automotive, Electronic Design Automation (EDA), Communications and Connectivity. The company operates delivery centers in Belagavi & Bengaluru.
Post this acquisition, MosChip will have an overall headcount of more than 2,000 employees, strengthening its scale, execution capacity, and ability to address larger, and more complex global programs.
With this proposed acquisition, MosChip will have following synergies.
- Delivery and engagement footprint across six strategic locations
Hyderabad, Bengaluru, Pune, Ahmedabad, Belagavi, and Silicon Valley (USA)—strengthening its ability to serve global customers and scale complex engineering programs.”
- Market Positioning
Vayavya Labs serves a global customer base that includes Eight of the Top Ten Global Semiconductor companies, Consumer Electronics (CE), Mobility/Automotive Communication & Connectivity. With development centers in India (Bengaluru and Belagavi) and a presence in key international markets such as the United States, Europe, and Japan, the company delivers end-to-end engineering solutions and collaborates closely with clients on next-generation technologies. A unique positioning of Vayavya is its “Beyond Bengaluru” initiative of delivering Technology led solutions and services from Tier-2 cities. Moschip hopes to replicate this success story pan India.
- Business and Capability Profile
Vayavya Labs’ core strength lies in its expertise in embedded software & systems, virtualization (Digital Twins), and verification & validation technologies. Vayavya Labs is recognized as a pioneer in Hardware-Software Interface (HSI®) methodologies, enabling seamless integration between hardware and software layers. Its offerings include digital twin and virtual ECU solutions, software-driven verification, ADAS (Advanced Driver Assistance Systems) validation, and automotive functional safety solutions. These capabilities not only help clients accelerate product development cycles, improve system reliability, and reduce time-to-market but also strengthen MosChip’s end‑to‑end engineering offering spanning silicon, embedded software, system validation, and platform integration.
- IP Capabilities
Vayavya Labs holds 9 granted patents and actively drives key industry standards in the Semiconductor and Automotive verticals.
- Revenue Upside
The acquisition creates an excellent cross‑sell and up‑sell opportunities, enabling:
- Embedded and automotive software Solutions to be offered to MosChip’s existing customers.
- Introduction of MosChip’s Silicon, IP, and System Design capabilities into Vayavya Labs customer base
Together, this enhances wallet share, deepens customer relationships, and supports longer‑term revenue growth.
Strong Financial Performance and Growth
Vayavya Labs is an EBITDA‑accretive business with a consistent operating track record. Over the last five years, the company has delivered revenue growth at a CAGR of 38% with healthy EBITDA, 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 opportunities 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.
People, Culture, and Leadership Strength
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.
Strategic Fit for MosChip
This acquisition:
- Significantly strengthens MosChip’s software‑led engineering capabilities.
- Helps Top-line growth and EBITDA.
- Further it helps the company move up the value chain in services.
- Geographical expansion by diversification both in Business development and engineering
Vayavya Labs acquisition will be value accretive, supporting MosChip’s long‑term objective of building a scalable, differentiated, and margin‑resilient Product Engineering Services platform.
