MosChip to acquire 73% stake in Vayavya Labs for Rs 245 Cr

MosChip Technologies Limited has revealed plans to acquire a 73% controlling stake in Vayavya Labs Private Limited for Rs 245.49 crore, marking a significant step in strengthening its software-led product engineering capabilities.

The acquisition, approved by MosChip’s board on April 16, 2026, is subject to regulatory clearances.

The transaction will be funded through a mix of internal accruals (60.5%) and a share swap (39.5%). MosChip also plans to acquire the remaining 27% stake after March 2028, with valuation linked to Vayavya’s performance.

Founded in 2006 and headquartered in Belagavi, Vayavya Labs is a “Silicon-to-System” engineering firm serving global semiconductor, automotive, and electronics clients. The company has built strong expertise in embedded systems, digital twins, and verification technologies, along with nine granted patents.

The acquisition is expected to significantly enhance MosChip’s capabilities across the semiconductor and automotive engineering value chain, spanning silicon design, embedded software, and system validation. The combined entity will have over 2,000 employees and a broader delivery footprint across six locations, including Hyderabad, Bengaluru, Pune, Ahmedabad, Belagavi, and Silicon Valley.

Strategically, the deal unlocks cross-selling opportunities by enabling MosChip to offer embedded and automotive software solutions to its existing clients while introducing its silicon and IP capabilities to Vayavya’s customer base.

Vayavya Labs has delivered strong financial performance, recording a revenue CAGR of 38% over the past five years with healthy margins. Its project-led delivery model and global client base further strengthen recurring revenue visibility.

MosChip said the acquisition aligns with its long-term strategy to scale a differentiated, margin-resilient product engineering platform while expanding its global presence and moving up the value chain.