New Delhi, July 21 -- Volkswagen is in advanced discussions with JSW Group for investment in the German carmaker's local unit, while PAG is in talks with two private equity firms to sell its controlling stake in Nuvama Wealth Management, according to separate media reports.

In fund-raising news, Skylark Labs is looking to woo US investors.

Volkswagen

Volkswagen is in advanced discussions with JSW Group, seeking a local partner to infuse fresh capital and bolster its unit in India, according to a Bloomberg report, citing sources.

The two companies are working toward a potential agreement in the coming weeks that involves JSW investing in Volkswagen's Skoda Auto Volkswagen India Pvt Ltd. The Sajjan Jindal-led conglomerate is seeking a majority stake in the venture, the report added.

Although executives from both sides have discussed the deal, several issues remain unresolved including the deal's valuation and the capital amounts JSW and Volkswagen will invest, the report noted. However, a potential deal will cap a years-long hunt by Volkswagen for a local Indian partner.

Nuvama Wealth

Asia-focussed private equity firm PAG is in discussions with two buyout firms regarding the sale of its controlling stake in Nuvama Wealth Management, according to a Moneycontrol report. Citing sources, the report said PAG is in talks with CVC Capital Partners and Sweden's EQT for the sale.

PAG holds roughly 54% stake in Nuvama through Asia Pragati Strategic Investment Fund and Pagac Ecstasy Pte Ltd. At Nuvama's current market capitalisation of nearly Rs 34,000 crore, the stake is valued at more than Rs 18,000 crore (nearly $1.9 billion).

CVC and EQT have expressed interest in acquiring the wealth management firm and discussions with PAG are ongoing. Still, the discussions are at an exploratory stage, and valuation will be an important factor in determining whether the talks progress.

The transaction, potentially the largest private equity exits in India's financial services sector, could trigger an open offer for an additional 26% stake from Nuvama's public shareholders.

Skylark Labs

Physical AI startup Skylark Labs is in talks to raise $100-$150 million (around Rs 962-1,444 crore) in a funding round that could value the company at over $1 billion, according to a Mint interview with the company's founder and CEO Amarjot Singh.

The California-headquartered Skylark is raising the round in the US and expects participation from investors including Bommie Capital, Riceberg Ventures, Symphony Ventures and Cushman & Wakefield. Mint reported, quoting Singh, that around 70% of the planned fundraise has already been committed.

Skylark Labs builds self-learning AI for edge devices that can be deployed on robots, drones and autonomous vehicles. These systems are designed for defence, border security and public safety applications.

Started in 2021, the company serves a mix of defence, government and commercial customers across India and overseas.

Published by HT Digital Content Services with permission from VC Circle.