MosChip Technologies Limited has announced the acquisition of a 73% controlling stake in Vayavya Labs Private Limited for a total consideration of ₹245.49 crore, marking a significant step in its strategy to scale its software-led product engineering business.
The transaction, approved by MosChip’s board, will be executed through a combination of ₹148.52 crore in cash and ₹96.97 crore via share swap, implying a split of approximately 60.5% cash and 39.5% equity. The company also plans to acquire the remaining 27% stake after March 31, 2028, with valuation linked to Vayavya Labs’ future business performance.
Headquartered in Belagavi and incorporated in 2006, Vayavya Labs is a “silicon-to-system” engineering services provider with capabilities spanning semiconductors, automotive, consumer electronics, electronic design automation (EDA), and communications technologies. The company operates delivery centres in Belagavi and Bengaluru and serves a global client base across the United States, Europe, Israel, and Japan.
The acquisition is expected to significantly enhance MosChip’s engineering capabilities, particularly in embedded software, digital twin technologies, and system validation. Vayavya Labs is also known for its expertise in hardware-software interface methodologies and holds multiple patents in semiconductor and automotive domains.
Post-acquisition, MosChip’s workforce will expand to over 2,000 employees, strengthening its execution capacity and enabling a broader delivery footprint across key locations including Ahmedabad, Belagavi, Bengaluru, Hyderabad, Pune, and Silicon Valley.
The company expects the deal to unlock cross-selling and up-selling opportunities, combining MosChip’s silicon and system design capabilities with Vayavya’s embedded software and automotive solutions. This is likely to deepen customer relationships and drive long-term revenue growth.
Vayavya Labs has demonstrated consistent growth and is described as an EBITDA-accretive business, supported by a strong mix of turnkey and fixed-price contracts that enhance revenue visibility and operating margins.
MosChip stated that the acquisition aligns with its long-term objective of building a scalable, high-margin product engineering platform, while expanding its presence beyond Tier-1 cities and strengthening its position in global technology markets. The transaction remains subject to customary regulatory and statutory approvals.